Correlation Between American Well and OPTIMIZERx Corp
Can any of the company-specific risk be diversified away by investing in both American Well and OPTIMIZERx 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 American Well and OPTIMIZERx Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Well Corp and OPTIMIZERx Corp, you can compare the effects of market volatilities on American Well and OPTIMIZERx 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 American Well with a short position of OPTIMIZERx Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Well and OPTIMIZERx Corp.
Diversification Opportunities for American Well and OPTIMIZERx Corp
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and OPTIMIZERx is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding American Well Corp and OPTIMIZERx Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPTIMIZERx Corp and American Well 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 American Well Corp are associated (or correlated) with OPTIMIZERx Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPTIMIZERx Corp has no effect on the direction of American Well i.e., American Well and OPTIMIZERx Corp go up and down completely randomly.
Pair Corralation between American Well and OPTIMIZERx Corp
Given the investment horizon of 90 days American Well Corp is expected to generate 1.44 times more return on investment than OPTIMIZERx Corp. However, American Well is 1.44 times more volatile than OPTIMIZERx Corp. It trades about 0.05 of its potential returns per unit of risk. OPTIMIZERx Corp is currently generating about -0.09 per unit of risk. If you would invest 810.00 in American Well Corp on September 3, 2024 and sell it today you would earn a total of 112.00 from holding American Well Corp or generate 13.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Well Corp vs. OPTIMIZERx Corp
Performance |
| Timeline |
| American Well Corp |
| OPTIMIZERx Corp |
American Well and OPTIMIZERx Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Well and OPTIMIZERx Corp
The main advantage of trading using opposite American Well and OPTIMIZERx Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Well position performs unexpectedly, OPTIMIZERx 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 OPTIMIZERx Corp will offset losses from the drop in OPTIMIZERx Corp's long position.| American Well vs. Doximity | American Well vs. Certara | American Well vs. Teladoc | American Well vs. Definitive Healthcare Corp |
| OPTIMIZERx Corp vs. Forian Inc | OPTIMIZERx Corp vs. Streamline Health Solutions | OPTIMIZERx Corp vs. Aclarion | OPTIMIZERx Corp vs. HealthStream |
Check out your portfolio center.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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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