Correlation Between CareCloud and Aclarion

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

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

Diversification Opportunities for CareCloud and Aclarion

-0.37

Correlation Coefficient

CareCloud  Aclarion

Very good diversification

The 3 months correlation between CareCloud and Aclarion is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CareCloud and Aclarion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aclarion and CareCloud 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 CareCloud are associated (or correlated) with Aclarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aclarion has no effect on the direction of CareCloud i.e., CareCloud and Aclarion go up and down completely randomly.

Pair Corralation between CareCloud and Aclarion

Given the investment horizon of 90 days CareCloud is expected to generate 0.99 times more return on investment than Aclarion. However, CareCloud is 1.01 times less risky than Aclarion. It trades about 0.08 of its potential returns per unit of risk. Aclarion is currently generating about -0.06 per unit of risk. If you would invest  273.00  in CareCloud on September 17, 2024 and sell it today you would earn a total of  69.00  from holding CareCloud or generate 25.27% return on investment over 90 days.

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

CareCloud  vs.  Aclarion

CareCloud

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CareCloud are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting essential indicators, CareCloud exhibited solid returns over the last few months and may actually be approaching a breakup point.

Aclarion

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aclarion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with CareCloud and Aclarion

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

The idea behind CareCloud and Aclarion 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.