Correlation Between Elevance Health and Azenta

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

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

Diversification Opportunities for Elevance Health and Azenta

-0.79

Correlation Coefficient

Elevance Health  Azenta

Pay attention - limited upside

The 3 months correlation between Elevance and Azenta is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Elevance Health and Azenta Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azenta Inc and Elevance 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 Elevance Health are associated (or correlated) with Azenta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azenta Inc has no effect on the direction of Elevance Health i.e., Elevance Health and Azenta go up and down completely randomly.

Pair Corralation between Elevance Health and Azenta

Considering the 90-day investment horizon Elevance Health is expected to under-perform the Azenta. In addition to that, Elevance Health is 1.13 times more volatile than Azenta Inc. It trades about -0.18 of its total potential returns per unit of risk. Azenta Inc is currently generating about 0.15 per unit of volatility. If you would invest  2,542  in Azenta Inc on May 6, 2025 and sell it today you would earn a total of  699.00  from holding Azenta Inc or generate 27.5% return on investment over 90 days.

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

Elevance Health  vs.  Azenta Inc

Elevance Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elevance Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Azenta Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Azenta Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Azenta sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Elevance Health and Azenta

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

The idea behind Elevance Health and Azenta Inc 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.