Correlation Between Streamline Health and Heartbeam

Can any of the company-specific risk be diversified away by investing in both Streamline Health and Heartbeam at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Streamline Health and Heartbeam into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Streamline Health Solutions and Heartbeam, you can compare the effects of market volatilities on Streamline Health and Heartbeam and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Streamline Health with a short position of Heartbeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Streamline Health and Heartbeam.

Diversification Opportunities for Streamline Health and Heartbeam

0.63

Correlation Coefficient

Streamline Health  Heartbeam

Poor diversification

The 3 months correlation between Streamline and Heartbeam is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Streamline Health Solutions and Heartbeam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heartbeam and Streamline Health is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Streamline Health Solutions are associated (or correlated) with Heartbeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heartbeam has no effect on the direction of Streamline Health i.e., Streamline Health and Heartbeam go up and down completely randomly.

Pair Corralation between Streamline Health and Heartbeam

Given the investment horizon of 90 days Streamline Health Solutions is expected to under-perform the Heartbeam. In addition to that, Streamline Health is 1.33 times more volatile than Heartbeam. It trades about -0.06 of its total potential returns per unit of risk. Heartbeam is currently generating about -0.07 per unit of volatility. If you would invest  230.00  in Heartbeam on December 31, 2024 and sell it today you would lose (35.00) from holding Heartbeam or give up 15.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Streamline Health Solutions  vs.  Heartbeam

Streamline Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Streamline Health Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in May 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Heartbeam

Risk-Adjusted Performance

Very Weak

Over the last 90 days Heartbeam has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in May 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Streamline Health and Heartbeam

The main advantage of trading using opposite Streamline Health and Heartbeam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Streamline Health position performs unexpectedly, Heartbeam can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Heartbeam will offset losses from the drop in Heartbeam's long position.

The idea behind Streamline Health Solutions and Heartbeam pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.