Correlation Between Beyond Air and NeueHealth

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

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

Diversification Opportunities for Beyond Air and NeueHealth

0.29

Correlation Coefficient

Beyond Air  NeueHealth

Modest diversification

The 3 months correlation between Beyond and NeueHealth is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Air and NeueHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeueHealth and Beyond Air 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 Beyond Air are associated (or correlated) with NeueHealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeueHealth has no effect on the direction of Beyond Air i.e., Beyond Air and NeueHealth go up and down completely randomly.

Pair Corralation between Beyond Air and NeueHealth

Given the investment horizon of 90 days Beyond Air is expected to under-perform the NeueHealth. In addition to that, Beyond Air is 1.28 times more volatile than NeueHealth. It trades about -0.07 of its total potential returns per unit of risk. NeueHealth is currently generating about -0.01 per unit of volatility. If you would invest  740.00  in NeueHealth on December 30, 2024 and sell it today you would lose (55.00) from holding NeueHealth or give up 7.43% of portfolio value over 90 days.

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

Beyond Air  vs.  NeueHealth

Beyond Air

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beyond Air has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

NeueHealth

Risk-Adjusted Performance

Very Weak

Over the last 90 days NeueHealth has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, NeueHealth is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Beyond Air and NeueHealth

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

The idea behind Beyond Air and NeueHealth 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.