Correlation Between Advanced Health and Intouch Insight

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

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

Diversification Opportunities for Advanced Health and Intouch Insight

0.2

Correlation Coefficient

Advanced Health  Intouch Insight

Modest diversification

The 3 months correlation between Advanced and Intouch is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Health Intelligence and Intouch Insight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intouch Insight and Advanced 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 Advanced Health Intelligence are associated (or correlated) with Intouch Insight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intouch Insight has no effect on the direction of Advanced Health i.e., Advanced Health and Intouch Insight go up and down completely randomly.

Pair Corralation between Advanced Health and Intouch Insight

Assuming the 90 days horizon Advanced Health Intelligence is expected to generate 1.2 times more return on investment than Intouch Insight. However, Advanced Health is 1.2 times more volatile than Intouch Insight. It trades about 0.02 of its potential returns per unit of risk. Intouch Insight is currently generating about 0.02 per unit of risk. If you would invest  0.40  in Advanced Health Intelligence on April 28, 2025 and sell it today you would earn a total of  0.00  from holding Advanced Health Intelligence or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Advanced Health Intelligence  vs.  Intouch Insight

Advanced Health Inte

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advanced Health Intelligence has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Advanced Health is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Intouch Insight

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intouch Insight has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Advanced Health and Intouch Insight

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

The idea behind Advanced Health Intelligence and Intouch Insight 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..