Correlation Between Streamline Health and National Research

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

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

Diversification Opportunities for Streamline Health and National Research

0.64

Correlation Coefficient

Streamline Health  National Research

Poor diversification

The 3 months correlation between Streamline and National is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Streamline Health Solutions and National Research Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Research Corp and Streamline 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 Streamline Health Solutions are associated (or correlated) with National Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Research Corp has no effect on the direction of Streamline Health i.e., Streamline Health and National Research go up and down completely randomly.

Pair Corralation between Streamline Health and National Research

Given the investment horizon of 90 days Streamline Health Solutions is expected to generate 6.04 times more return on investment than National Research. However, Streamline Health is 6.04 times more volatile than National Research Corp. It trades about 0.11 of its potential returns per unit of risk. National Research Corp is currently generating about 0.01 per unit of risk. If you would invest  290.00  in Streamline Health Solutions on May 4, 2025 and sell it today you would earn a total of  242.00  from holding Streamline Health Solutions or generate 83.45% return on investment over 90 days.

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

Streamline Health Solutions  vs.  National Research Corp

Streamline Health

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Streamline Health Solutions are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Streamline Health displayed solid returns over the last few months and may actually be approaching a breakup point.

National Research Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days National Research Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, National Research is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Streamline Health and National Research

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

The idea behind Streamline Health Solutions and National Research Corp 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.