Correlation Between CareMax and Vitalhub Corp

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

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

Diversification Opportunities for CareMax and Vitalhub Corp

-0.68

Correlation Coefficient

CareMax  Vitalhub Corp

Excellent diversification

The 3 months correlation between CareMax and Vitalhub is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding CareMax and Vitalhub Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitalhub Corp 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 Vitalhub Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitalhub Corp has no effect on the direction of CareMax i.e., CareMax and Vitalhub Corp go up and down completely randomly.

Pair Corralation between CareMax and Vitalhub Corp

Given the investment horizon of 90 days CareMax is expected to under-perform the Vitalhub Corp. In addition to that, CareMax is 6.69 times more volatile than Vitalhub Corp. It trades about -0.21 of its total potential returns per unit of risk. Vitalhub Corp is currently generating about 0.19 per unit of volatility. If you would invest  650.00  in Vitalhub Corp on September 17, 2024 and sell it today you would earn a total of  180.00  from holding Vitalhub Corp or generate 27.69% return on investment over 90 days.

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

CareMax  vs.  Vitalhub Corp

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 conflicting 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.

Vitalhub Corp

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vitalhub Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental drivers, Vitalhub Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CareMax and Vitalhub Corp

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

The idea behind CareMax and Vitalhub Corp 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.