Correlation Between Vitalhub Corp and Augmedix

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

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

Diversification Opportunities for Vitalhub Corp and Augmedix

0.61

Correlation Coefficient

Vitalhub Corp  Augmedix

Poor diversification

The 3 months correlation between Vitalhub and Augmedix is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Vitalhub Corp and Augmedix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augmedix and Vitalhub Corp 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 Vitalhub Corp 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 Vitalhub Corp i.e., Vitalhub Corp and Augmedix go up and down completely randomly.

Pair Corralation between Vitalhub Corp and Augmedix

Assuming the 90 days horizon Vitalhub Corp is expected to generate 7.2 times more return on investment than Augmedix. However, Vitalhub Corp is 7.2 times more volatile than Augmedix. It trades about 0.19 of its potential returns per unit of risk. Augmedix is currently generating about 0.22 per unit of risk. 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 Together
Strength	Significant
Accuracy	20.31%
Values	Daily Returns

Vitalhub Corp  vs.  Augmedix

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.

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 Vitalhub Corp and Augmedix

The main advantage of trading using opposite Vitalhub Corp and Augmedix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vitalhub Corp 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 Vitalhub Corp 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.