Correlation Between CareMax and Streamline Health
Can any of the company-specific risk be diversified away by investing in both CareMax and Streamline Health 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 Streamline Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CareMax and Streamline Health Solutions, you can compare the effects of market volatilities on CareMax and Streamline Health 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 Streamline Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareMax and Streamline Health.
Diversification Opportunities for CareMax and Streamline Health
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CareMax and Streamline is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CareMax and Streamline Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Streamline Health 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 Streamline Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Streamline Health has no effect on the direction of CareMax i.e., CareMax and Streamline Health go up and down completely randomly.
Pair Corralation between CareMax and Streamline Health
Given the investment horizon of 90 days CareMax is expected to under-perform the Streamline Health. In addition to that, CareMax is 1.16 times more volatile than Streamline Health Solutions. It trades about -0.49 of its total potential returns per unit of risk. Streamline Health Solutions is currently generating about 0.14 per unit of volatility. If you would invest 225.00 in Streamline Health Solutions on August 31, 2024 and sell it today you would earn a total of 53.00 from holding Streamline Health Solutions or generate 23.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareMax vs. Streamline Health Solutions
Performance |
| Timeline |
| CareMax |
| Streamline Health |
CareMax and Streamline Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareMax and Streamline Health
The main advantage of trading using opposite CareMax and Streamline Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareMax position performs unexpectedly, Streamline Health 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 Streamline Health will offset losses from the drop in Streamline Health's long position.| CareMax vs. Privia Health Group | CareMax vs. HealthStream | CareMax vs. Certara | CareMax vs. National Research Corp |
| Streamline Health vs. HealthStream | Streamline Health vs. National Research Corp | Streamline Health vs. Forian Inc | Streamline Health 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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