Correlation Between CareMax and Spok Holdings
Can any of the company-specific risk be diversified away by investing in both CareMax and Spok Holdings 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 Spok Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CareMax and Spok Holdings, you can compare the effects of market volatilities on CareMax and Spok Holdings 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 Spok Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareMax and Spok Holdings.
Diversification Opportunities for CareMax and Spok Holdings
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CareMax and Spok is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding CareMax and Spok Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spok Holdings 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 Spok Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spok Holdings has no effect on the direction of CareMax i.e., CareMax and Spok Holdings go up and down completely randomly.
Pair Corralation between CareMax and Spok Holdings
Given the investment horizon of 90 days CareMax is expected to under-perform the Spok Holdings. In addition to that, CareMax is 7.32 times more volatile than Spok Holdings. It trades about -0.49 of its total potential returns per unit of risk. Spok Holdings is currently generating about 0.31 per unit of volatility. If you would invest 1,465 in Spok Holdings on August 31, 2024 and sell it today you would earn a total of 182.00 from holding Spok Holdings or generate 12.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CareMax vs. Spok Holdings
Performance |
| Timeline |
| CareMax |
| Spok Holdings |
CareMax and Spok Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareMax and Spok Holdings
The main advantage of trading using opposite CareMax and Spok Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareMax position performs unexpectedly, Spok Holdings 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 Spok Holdings will offset losses from the drop in Spok Holdings' long position.| CareMax vs. Privia Health Group | CareMax vs. HealthStream | CareMax vs. Certara | CareMax vs. National Research Corp |
| Spok Holdings vs. Forian Inc | Spok Holdings vs. Streamline Health Solutions | Spok Holdings vs. National Research Corp | Spok Holdings vs. HealthEquity |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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