Correlation Between EUDA Health and CareMax
Can any of the company-specific risk be diversified away by investing in both EUDA Health and CareMax 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 EUDA Health and CareMax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EUDA Health Holdings and CareMax, you can compare the effects of market volatilities on EUDA Health and CareMax 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 EUDA Health with a short position of CareMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of EUDA Health and CareMax.
Diversification Opportunities for EUDA Health and CareMax
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between EUDA and CareMax is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings and CareMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareMax and EUDA Health 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 EUDA Health Holdings are associated (or correlated) with CareMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareMax has no effect on the direction of EUDA Health i.e., EUDA Health and CareMax go up and down completely randomly.
Pair Corralation between EUDA Health and CareMax
Given the investment horizon of 90 days EUDA Health Holdings is expected to generate 0.39 times more return on investment than CareMax. However, EUDA Health Holdings is 2.54 times less risky than CareMax. It trades about 0.0 of its potential returns per unit of risk. CareMax is currently generating about -0.49 per unit of risk. If you would invest 452.00 in EUDA Health Holdings on August 31, 2024 and sell it today you would lose (9.00) from holding EUDA Health Holdings or give up 1.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
EUDA Health Holdings vs. CareMax
Performance |
| Timeline |
| EUDA Health Holdings |
| CareMax |
EUDA Health and CareMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EUDA Health and CareMax
The main advantage of trading using opposite EUDA Health and CareMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EUDA Health position performs unexpectedly, CareMax 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 CareMax will offset losses from the drop in CareMax's long position.| EUDA Health vs. Healthcare Triangle | EUDA Health vs. Bullfrog AI Holdings, | EUDA Health vs. Mangoceuticals, Common Stock | EUDA Health vs. FOXO Technologies |
| CareMax vs. Privia Health Group | CareMax vs. HealthStream | CareMax vs. Certara | CareMax vs. National Research Corp |
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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