Correlation Between Goodrx Holdings and CareCloud
Can any of the company-specific risk be diversified away by investing in both Goodrx Holdings 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 Goodrx Holdings and CareCloud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodrx Holdings and CareCloud, you can compare the effects of market volatilities on Goodrx Holdings 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 Goodrx Holdings with a short position of CareCloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodrx Holdings and CareCloud.
Diversification Opportunities for Goodrx Holdings and CareCloud
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goodrx and CareCloud is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Goodrx Holdings and CareCloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareCloud and Goodrx Holdings 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 Goodrx Holdings 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 Goodrx Holdings i.e., Goodrx Holdings and CareCloud go up and down completely randomly.
Pair Corralation between Goodrx Holdings and CareCloud
Given the investment horizon of 90 days Goodrx Holdings is expected to under-perform the CareCloud. But the stock apears to be less risky and, when comparing its historical volatility, Goodrx Holdings is 1.25 times less risky than CareCloud. The stock trades about -0.19 of its potential returns per unit of risk. The CareCloud is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,050 in CareCloud on September 3, 2024 and sell it today you would earn a total of 641.00 from holding CareCloud or generate 61.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodrx Holdings vs. CareCloud
Performance |
| Timeline |
| Goodrx Holdings |
| CareCloud |
Goodrx Holdings and CareCloud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodrx Holdings and CareCloud
The main advantage of trading using opposite Goodrx Holdings and CareCloud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodrx Holdings 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.| Goodrx Holdings vs. Teladoc | Goodrx Holdings vs. Talkspace | Goodrx Holdings vs. Accolade | Goodrx Holdings vs. Doximity |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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