Correlation Between CareMax and Agiliti
Can any of the company-specific risk be diversified away by investing in both CareMax and Agiliti 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 CareMax and Agiliti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CareMax and Agiliti, you can compare the effects of market volatilities on CareMax and Agiliti 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 CareMax with a short position of Agiliti. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareMax and Agiliti.
Diversification Opportunities for CareMax and Agiliti
Good diversification
The 3 months correlation between CareMax and Agiliti is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding CareMax and Agiliti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agiliti and CareMax 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 CareMax are associated (or correlated) with Agiliti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agiliti has no effect on the direction of CareMax i.e., CareMax and Agiliti go up and down completely randomly.
Pair Corralation between CareMax and Agiliti
Given the investment horizon of 90 days CareMax is expected to under-perform the Agiliti. In addition to that, CareMax is 7.92 times more volatile than Agiliti. It trades about -0.04 of its total potential returns per unit of risk. Agiliti is currently generating about 0.07 per unit of volatility. If you would invest 1,487 in Agiliti on November 1, 2024 and sell it today you would earn a total of 202.00 from holding Agiliti or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 19.62% |
| Values | Daily Returns |
CareMax vs. Agiliti
Performance |
| Timeline |
| CareMax |
| Agiliti |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CareMax and Agiliti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareMax and Agiliti
The main advantage of trading using opposite CareMax and Agiliti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareMax position performs unexpectedly, Agiliti 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 Agiliti will offset losses from the drop in Agiliti's long position.| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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