Correlation Between CareMax and Talkspace
Can any of the company-specific risk be diversified away by investing in both CareMax and Talkspace 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 Talkspace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CareMax and Talkspace, you can compare the effects of market volatilities on CareMax and Talkspace 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 Talkspace. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareMax and Talkspace.
Diversification Opportunities for CareMax and Talkspace
Very good diversification
The 3 months correlation between CareMax and Talkspace is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding CareMax and Talkspace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talkspace 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 Talkspace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talkspace has no effect on the direction of CareMax i.e., CareMax and Talkspace go up and down completely randomly.
Pair Corralation between CareMax and Talkspace
Given the investment horizon of 90 days CareMax is expected to generate 1.88 times less return on investment than Talkspace. In addition to that, CareMax is 1.83 times more volatile than Talkspace. It trades about 0.02 of its total potential returns per unit of risk. Talkspace is currently generating about 0.05 per unit of volatility. If you would invest 15.00 in Talkspace on September 1, 2024 and sell it today you would lose (2.00) from holding Talkspace or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
CareMax vs. Talkspace
Performance |
| Timeline |
| CareMax |
| Talkspace |
CareMax and Talkspace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareMax and Talkspace
The main advantage of trading using opposite CareMax and Talkspace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareMax position performs unexpectedly, Talkspace 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 Talkspace will offset losses from the drop in Talkspace's long position.| CareMax vs. Evolent Health | CareMax vs. Certara | CareMax vs. Privia Health Group | CareMax vs. HealthStream |
| Talkspace vs. Microvast Holdings | Talkspace vs. Taboola Ltd Warrant | Talkspace vs. Katapult Holdings Equity |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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