Correlation Between CareCloud and Sharecare
Can any of the company-specific risk be diversified away by investing in both CareCloud 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 CareCloud and Sharecare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CareCloud and Sharecare, you can compare the effects of market volatilities on CareCloud 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 CareCloud with a short position of Sharecare. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareCloud and Sharecare.
Diversification Opportunities for CareCloud and Sharecare
Poor diversification
The 3 months correlation between CareCloud and Sharecare is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding CareCloud and Sharecare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharecare and CareCloud 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 CareCloud 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 CareCloud i.e., CareCloud and Sharecare go up and down completely randomly.
Pair Corralation between CareCloud and Sharecare
Assuming the 90 days horizon CareCloud is expected to generate 1.85 times less return on investment than Sharecare. But when comparing it to its historical volatility, CareCloud is 1.58 times less risky than Sharecare. It trades about 0.09 of its potential returns per unit of risk. Sharecare is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 81.00 in Sharecare on September 2, 2024 and sell it today you would earn a total of 62.00 from holding Sharecare or generate 76.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.78% |
| Values | Daily Returns |
CareCloud vs. Sharecare
Performance |
| Timeline |
| CareCloud |
| Sharecare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
CareCloud and Sharecare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareCloud and Sharecare
The main advantage of trading using opposite CareCloud and Sharecare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareCloud 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.| CareCloud vs. CareCloud | CareCloud vs. Fortress Biotech Pref | CareCloud vs. FAT Brands | CareCloud vs. CareCloud |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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