Correlation Between Minerva Surgical and Evolent Health

Can any of the company-specific risk be diversified away by investing in both Minerva Surgical and Evolent Health 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 Minerva Surgical and Evolent Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Minerva Surgical and Evolent Health, you can compare the effects of market volatilities on Minerva Surgical and Evolent Health 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 Minerva Surgical with a short position of Evolent Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minerva Surgical and Evolent Health.

Diversification Opportunities for Minerva Surgical and Evolent Health

0.0

Correlation Coefficient

Minerva Surgical  Evolent Health

Pay attention - limited upside

The 3 months correlation between Minerva and Evolent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Minerva Surgical and Evolent Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolent Health and Minerva Surgical 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 Minerva Surgical are associated (or correlated) with Evolent Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolent Health has no effect on the direction of Minerva Surgical i.e., Minerva Surgical and Evolent Health go up and down completely randomly.

Pair Corralation between Minerva Surgical and Evolent Health

If you would invest (100.00) in Minerva Surgical on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Minerva Surgical or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Minerva Surgical  vs.  Evolent Health

Minerva Surgical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Minerva Surgical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Minerva Surgical is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Evolent Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evolent Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Minerva Surgical and Evolent Health

The main advantage of trading using opposite Minerva Surgical and Evolent Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minerva Surgical position performs unexpectedly, Evolent Health 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 Evolent Health will offset losses from the drop in Evolent Health's long position.

The idea behind Minerva Surgical and Evolent Health 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.