Correlation Between Certara and CareMax
Can any of the company-specific risk be diversified away by investing in both Certara and CareMax 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 Certara and CareMax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Certara and CareMax, you can compare the effects of market volatilities on Certara and CareMax 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 Certara with a short position of CareMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Certara and CareMax.
Diversification Opportunities for Certara and CareMax
Very good diversification
The 3 months correlation between Certara and CareMax is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Certara and CareMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareMax and Certara 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 Certara are associated (or correlated) with CareMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareMax has no effect on the direction of Certara i.e., Certara and CareMax go up and down completely randomly.
Pair Corralation between Certara and CareMax
Given the investment horizon of 90 days Certara is expected to generate 0.16 times more return on investment than CareMax. However, Certara is 6.33 times less risky than CareMax. It trades about 0.0 of its potential returns per unit of risk. CareMax is currently generating about -0.04 per unit of risk. If you would invest 1,812 in Certara on November 19, 2024 and sell it today you would lose (393.00) from holding Certara or give up 21.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Certara vs. CareMax
Performance |
| Timeline |
| Certara |
| CareMax |
Certara and CareMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Certara and CareMax
The main advantage of trading using opposite Certara and CareMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Certara position performs unexpectedly, CareMax 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 CareMax will offset losses from the drop in CareMax's long position.| Certara vs. National Research Corp | Certara vs. Health Catalyst | Certara vs. HealthStream | Certara vs. Privia Health Group |
| CareMax vs. Evolent Health | CareMax vs. Certara | CareMax vs. Privia Health Group | CareMax 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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