Correlation Between CareMax and Certara
Can any of the company-specific risk be diversified away by investing in both CareMax and Certara 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 Certara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CareMax and Certara, you can compare the effects of market volatilities on CareMax and Certara 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 Certara. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareMax and Certara.
Diversification Opportunities for CareMax and Certara
Very good diversification
The 3 months correlation between CareMax and Certara is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding CareMax and Certara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Certara 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 Certara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Certara has no effect on the direction of CareMax i.e., CareMax and Certara go up and down completely randomly.
Pair Corralation between CareMax and Certara
Given the investment horizon of 90 days CareMax is expected to under-perform the Certara. In addition to that, CareMax is 6.33 times more volatile than Certara. It trades about -0.04 of its total potential returns per unit of risk. Certara is currently generating about 0.0 per unit of volatility. 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 |
CareMax vs. Certara
Performance |
| Timeline |
| CareMax |
| Certara |
CareMax and Certara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareMax and Certara
The main advantage of trading using opposite CareMax and Certara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareMax position performs unexpectedly, Certara 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 Certara will offset losses from the drop in Certara's long position.| CareMax vs. Evolent Health | CareMax vs. Certara | CareMax vs. Privia Health Group | CareMax vs. HealthStream |
| Certara vs. National Research Corp | Certara vs. Health Catalyst | Certara vs. HealthStream | Certara vs. Privia Health Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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