Correlation Between Performant Healthcare, and System1

Can any of the company-specific risk be diversified away by investing in both Performant Healthcare, and System1 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 Performant Healthcare, and System1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Performant Healthcare, and System1, you can compare the effects of market volatilities on Performant Healthcare, and System1 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 Performant Healthcare, with a short position of System1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performant Healthcare, and System1.

Diversification Opportunities for Performant Healthcare, and System1

0.28

Correlation Coefficient

Performant Healthcare,  System1

Modest diversification

The 3 months correlation between Performant and System1 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Performant Healthcare, and System1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on System1 and Performant Healthcare, 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 Performant Healthcare, are associated (or correlated) with System1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of System1 has no effect on the direction of Performant Healthcare, i.e., Performant Healthcare, and System1 go up and down completely randomly.

Pair Corralation between Performant Healthcare, and System1

Given the investment horizon of 90 days Performant Healthcare, is expected to generate 1.32 times more return on investment than System1. However, Performant Healthcare, is 1.32 times more volatile than System1. It trades about 0.16 of its potential returns per unit of risk. System1 is currently generating about 0.06 per unit of risk. If you would invest  258.00  in Performant Healthcare, on May 11, 2025 and sell it today you would earn a total of  504.00  from holding Performant Healthcare, or generate 195.35% return on investment over 90 days.

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

Performant Healthcare,  vs.  System1

Performant Healthcare,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Performant Healthcare, are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating essential indicators, Performant Healthcare, unveiled solid returns over the last few months and may actually be approaching a breakup point.

System1

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in System1 are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, System1 unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Performant Healthcare, and System1

The main advantage of trading using opposite Performant Healthcare, and System1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performant Healthcare, position performs unexpectedly, System1 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 System1 will offset losses from the drop in System1's long position.

The idea behind Performant Healthcare, and System1 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.