Correlation Between CareCloud and Sharecare

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

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

Diversification Opportunities for CareCloud and Sharecare

-0.4

Correlation Coefficient

CareCloud  Sharecare

Very good diversification

The 3 months correlation between CareCloud and Sharecare is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding CareCloud and Sharecare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharecare 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 Sharecare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharecare has no effect on the direction of CareCloud i.e., CareCloud and Sharecare go up and down completely randomly.

Pair Corralation between CareCloud and Sharecare

Given the investment horizon of 90 days CareCloud is expected to generate 3.46 times more return on investment than Sharecare. However, CareCloud is 3.46 times more volatile than Sharecare. It trades about 0.08 of its potential returns per unit of risk. Sharecare is currently generating about -0.11 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	Very Weak
Accuracy	42.19%
Values	Daily Returns

CareCloud  vs.  Sharecare

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.

Sharecare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sharecare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with CareCloud and Sharecare

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

The idea behind CareCloud and Sharecare 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..