Correlation Between WellCare Health and Kindred Healthcare
Can any of the company-specific risk be diversified away by investing in both WellCare Health and Kindred Healthcare 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 WellCare Health and Kindred Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WellCare Health Plans and Kindred Healthcare, you can compare the effects of market volatilities on WellCare Health and Kindred Healthcare 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 WellCare Health with a short position of Kindred Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of WellCare Health and Kindred Healthcare.
Diversification Opportunities for WellCare Health and Kindred Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WellCare and Kindred is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WellCare Health Plans and Kindred Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kindred Healthcare and WellCare 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 WellCare Health Plans are associated (or correlated) with Kindred Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kindred Healthcare has no effect on the direction of WellCare Health i.e., WellCare Health and Kindred Healthcare go up and down completely randomly.
Pair Corralation between WellCare Health and Kindred Healthcare
If you would invest (100.00) in Kindred Healthcare on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Kindred Healthcare or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WellCare Health Plans vs. Kindred Healthcare
Performance |
| Timeline |
| WellCare Health Plans |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kindred Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
WellCare Health and Kindred Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WellCare Health and Kindred Healthcare
The main advantage of trading using opposite WellCare Health and Kindred Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WellCare Health position performs unexpectedly, Kindred Healthcare 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 Kindred Healthcare will offset losses from the drop in Kindred Healthcare's long position.| WellCare Health vs. BCB Bancorp | WellCare Health vs. Deluxe | WellCare Health vs. Chiba Bank Ltd | WellCare Health vs. National CineMedia |
| Kindred Healthcare vs. Bm Technologies | Kindred Healthcare vs. Cadence Design Systems | Kindred Healthcare vs. Corporacion America Airports | Kindred Healthcare vs. Porvair plc |
Check out your portfolio center.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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |