Correlation Between CareMax and Brainsway
Can any of the company-specific risk be diversified away by investing in both CareMax and Brainsway 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 Brainsway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CareMax and Brainsway, you can compare the effects of market volatilities on CareMax and Brainsway 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 Brainsway. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareMax and Brainsway.
Diversification Opportunities for CareMax and Brainsway
Very good diversification
The 3 months correlation between CareMax and Brainsway is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding CareMax and Brainsway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brainsway 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 Brainsway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brainsway has no effect on the direction of CareMax i.e., CareMax and Brainsway go up and down completely randomly.
Pair Corralation between CareMax and Brainsway
Assuming the 90 days horizon CareMax is expected to generate 8.99 times more return on investment than Brainsway. However, CareMax is 8.99 times more volatile than Brainsway. It trades about 0.15 of its potential returns per unit of risk. Brainsway is currently generating about 0.0 per unit of risk. If you would invest 0.96 in CareMax on September 1, 2024 and sell it today you would earn a total of 0.00 from holding CareMax or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
CareMax vs. Brainsway
Performance |
| Timeline |
| CareMax |
| Brainsway |
CareMax and Brainsway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareMax and Brainsway
The main advantage of trading using opposite CareMax and Brainsway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareMax position performs unexpectedly, Brainsway 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 Brainsway will offset losses from the drop in Brainsway's long position.| CareMax vs. National Research Corp | CareMax vs. Evolent Health | CareMax vs. Simulations Plus | CareMax vs. Privia Health Group |
| Brainsway vs. Profound Medical Corp | Brainsway vs. Si Bone | Brainsway vs. Nevro Corp | Brainsway vs. Paragon 28 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |