Correlation Between Augmedix and Cue Health

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

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

Diversification Opportunities for Augmedix and Cue Health

-0.58

Correlation Coefficient

Augmedix  Cue Health

Excellent diversification

The 3 months correlation between Augmedix and Cue is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Augmedix and Cue Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Health and Augmedix 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 Augmedix are associated (or correlated) with Cue Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Health has no effect on the direction of Augmedix i.e., Augmedix and Cue Health go up and down completely randomly.

Pair Corralation between Augmedix and Cue Health

If you would invest  233.00  in Augmedix on September 17, 2024 and sell it today you would earn a total of  2.00  from holding Augmedix or generate 0.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

Augmedix  vs.  Cue Health

Augmedix

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Augmedix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Augmedix is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cue Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cue Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Cue Health is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Augmedix and Cue Health

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

The idea behind Augmedix and Cue Health 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.