EHC vs HCA: Correlation
How closely do Encompass Health Corporation (EHC) and HCA Healthcare (HCA) trade together? Their weekly returns over three years give a correlation of 0.42, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EHC and HCA?
Over the past 3 years, EHC and HCA moved with a correlation of 0.42, which is moderate. The relationship has been stable: the 1-year correlation (0.32) sits close to the 3-year figure. Over 5 years the correlation is 0.49, and the annualized covariance of weekly returns is 274.5 %².
By 3-year correlation, HCA places #9 of the 15 assets tracked against EHC. Over the last 12 months HCA came out ahead by 6.8 percentage points (-2.6% against +4.2%).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
EHC vs HCA: side by side
| EHC (Encompass Health Corporation) | HCA (HCA Healthcare) | |
|---|---|---|
| 1-year return | -2.6% | +4.2% |
| 5-year return | +101.2% | +72.5% |
| Volatility (ann.) | 24.5% | 26.9% |
| Beta vs S&P 500 | 0.61 | 0.42 |
| Max drawdown (3Y) | -26.1% | -33.6% |
| Market cap | $11.8B | $90.8B |
| P/E (trailing) | 20.2 | 14.1 |
| Dividend yield | 0.63% | 0.70% |
| Sector / category | US Listed | Health Care |
Year-by-year returns
| Year | EHC | HCA |
|---|---|---|
| 2022 | +17.0% | -5.6% |
| 2023 | +12.6% | +13.8% |
| 2024 | +39.2% | +11.8% |
| 2025 | +15.7% | +56.7% |
| 2026 | +13.3% | -9.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EHC and HCA good diversifiers for each other?
Reasonably. At 0.42, EHC and HCA keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between EHC and HCA?
The EHC/HCA correlation stands at 0.42 on a 3-year window (1 year: 0.32, 5 years: 0.49), computed from weekly returns as of 2026-08-27.
Is HCA a good diversifier for EHC?
Reasonably. At 0.42, EHC and HCA keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.42 mean?
A reading of 0.42 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: EHC correlations · HCA correlations
