Correlation Between Femasys and CareCloud
Can any of the company-specific risk be diversified away by investing in both Femasys and CareCloud 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 Femasys and CareCloud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Femasys and CareCloud, you can compare the effects of market volatilities on Femasys and CareCloud 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 Femasys with a short position of CareCloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and CareCloud.
Diversification Opportunities for Femasys and CareCloud
Excellent diversification
The 3 months correlation between Femasys and CareCloud is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and CareCloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareCloud and Femasys 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 Femasys are associated (or correlated) with CareCloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareCloud has no effect on the direction of Femasys i.e., Femasys and CareCloud go up and down completely randomly.
Pair Corralation between Femasys and CareCloud
Given the investment horizon of 90 days Femasys is expected to generate 3.21 times more return on investment than CareCloud. However, Femasys is 3.21 times more volatile than CareCloud. It trades about 0.04 of its potential returns per unit of risk. CareCloud is currently generating about 0.03 per unit of risk. If you would invest 103.00 in Femasys on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Femasys or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Femasys vs. CareCloud
Performance |
| Timeline |
| Femasys |
| CareCloud |
Femasys and CareCloud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Femasys and CareCloud
The main advantage of trading using opposite Femasys and CareCloud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys position performs unexpectedly, CareCloud 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 CareCloud will offset losses from the drop in CareCloud's long position.| Femasys vs. Baxter International | Femasys vs. West Pharmaceutical Services | Femasys vs. ResMed Inc | Femasys vs. The Cooper Companies, |
| CareCloud vs. CareCloud | CareCloud vs. Fortress Biotech Pref | CareCloud vs. FAT Brands | CareCloud vs. CareCloud |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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