Correlation Between CareMax and Augmedix

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

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

Diversification Opportunities for CareMax and Augmedix

-0.46

Correlation Coefficient

CareMax  Augmedix

Very good diversification

The 3 months correlation between CareMax and Augmedix is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding CareMax and Augmedix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augmedix and CareMax 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 CareMax are associated (or correlated) with Augmedix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augmedix has no effect on the direction of CareMax i.e., CareMax and Augmedix go up and down completely randomly.

Pair Corralation between CareMax and Augmedix

Given the investment horizon of 90 days CareMax is expected to under-perform the Augmedix. In addition to that, CareMax is 34.83 times more volatile than Augmedix. It trades about -0.16 of its total potential returns per unit of risk. Augmedix is currently generating about 0.24 per unit of volatility. If you would invest  231.00  in Augmedix on September 3, 2024 and sell it today you would earn a total of  4.00  from holding Augmedix or generate 1.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	35.94%
Values	Daily Returns

CareMax  vs.  Augmedix

CareMax

Risk-Adjusted Performance

0 of 100

Very Weak

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

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.

Pair Trading with CareMax and Augmedix

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

The idea behind CareMax and Augmedix 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.