Correlation Between Healthcare Triangle and Corcept Therapeutics

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

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

Diversification Opportunities for Healthcare Triangle and Corcept Therapeutics

-0.13

Correlation Coefficient

Healthcare Triangle  Corcept Therapeutics

Good diversification

The 3 months correlation between Healthcare and Corcept is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Triangle and Corcept Therapeutics Incorpora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corcept Therapeutics and Healthcare Triangle 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 Healthcare Triangle are associated (or correlated) with Corcept Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corcept Therapeutics has no effect on the direction of Healthcare Triangle i.e., Healthcare Triangle and Corcept Therapeutics go up and down completely randomly.

Pair Corralation between Healthcare Triangle and Corcept Therapeutics

Given the investment horizon of 90 days Healthcare Triangle is expected to generate 16.03 times more return on investment than Corcept Therapeutics. However, Healthcare Triangle is 16.03 times more volatile than Corcept Therapeutics Incorporated. It trades about 0.07 of its potential returns per unit of risk. Corcept Therapeutics Incorporated is currently generating about 0.02 per unit of risk. If you would invest  4,806  in Healthcare Triangle on May 6, 2025 and sell it today you would lose (4,295) from holding Healthcare Triangle or give up 89.37% of portfolio value over 90 days.

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

Healthcare Triangle  vs.  Corcept Therapeutics Incorpora

Healthcare Triangle

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Healthcare Triangle are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Healthcare Triangle demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Corcept Therapeutics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Corcept Therapeutics Incorporated are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Corcept Therapeutics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Healthcare Triangle and Corcept Therapeutics

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

The idea behind Healthcare Triangle and Corcept Therapeutics Incorporated 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.