Correlation Between ATI Physical and Sharecare
Can any of the company-specific risk be diversified away by investing in both ATI Physical 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 ATI Physical and Sharecare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATI Physical Therapy and Sharecare, you can compare the effects of market volatilities on ATI Physical 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 ATI Physical with a short position of Sharecare. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATI Physical and Sharecare.
Diversification Opportunities for ATI Physical and Sharecare
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATI and Sharecare is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding ATI Physical Therapy and Sharecare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharecare and ATI Physical 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 ATI Physical Therapy 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 ATI Physical i.e., ATI Physical and Sharecare go up and down completely randomly.
Pair Corralation between ATI Physical and Sharecare
Given the investment horizon of 90 days ATI Physical Therapy is expected to under-perform the Sharecare. But the stock apears to be less risky and, when comparing its historical volatility, ATI Physical Therapy is 1.47 times less risky than Sharecare. The stock trades about -0.11 of its potential returns per unit of risk. The Sharecare is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 97.00 in Sharecare on September 2, 2024 and sell it today you would earn a total of 46.00 from holding Sharecare or generate 47.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 88.71% |
| Values | Daily Returns |
ATI Physical Therapy vs. Sharecare
Performance |
| Timeline |
| ATI Physical Therapy |
| Sharecare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
ATI Physical and Sharecare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATI Physical and Sharecare
The main advantage of trading using opposite ATI Physical and Sharecare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATI Physical 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.| ATI Physical vs. Universal Health Services | ATI Physical vs. Lifestance Health Group | ATI Physical vs. Select Medical Holdings | ATI Physical vs. Acadia Healthcare |
| Sharecare vs. Privia Health Group | Sharecare vs. Evolent Health | Sharecare vs. HealthStream | Sharecare vs. Streamline Health Solutions |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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