Correlation Between Vitalhub Corp and Cue Health

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

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

Diversification Opportunities for Vitalhub Corp and Cue Health

-0.89

Correlation Coefficient

Vitalhub Corp  Cue Health

Pay attention - limited upside

The 3 months correlation between Vitalhub and Cue is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Vitalhub Corp and Cue Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Health and Vitalhub Corp 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 Vitalhub Corp are associated (or correlated) with Cue Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Health has no effect on the direction of Vitalhub Corp i.e., Vitalhub Corp and Cue Health go up and down completely randomly.

Pair Corralation between Vitalhub Corp and Cue Health

Assuming the 90 days horizon Vitalhub Corp is expected to generate 0.21 times more return on investment than Cue Health. However, Vitalhub Corp is 4.84 times less risky than Cue Health. It trades about 0.15 of its potential returns per unit of risk. Cue Health is currently generating about -0.11 per unit of risk. If you would invest  200.00  in Vitalhub Corp on September 14, 2024 and sell it today you would earn a total of  605.00  from holding Vitalhub Corp or generate 302.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	68.7%
Values	Daily Returns

Vitalhub Corp  vs.  Cue Health

Vitalhub Corp

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vitalhub Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal fundamental drivers, Vitalhub Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Cue Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cue Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Cue Health is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Vitalhub Corp and Cue Health

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

The idea behind Vitalhub Corp and Cue 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.