Correlation Between Indie Semiconductor and CareMax
Can any of the company-specific risk be diversified away by investing in both Indie Semiconductor 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 Indie Semiconductor and CareMax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indie Semiconductor Warrant and CareMax, you can compare the effects of market volatilities on Indie Semiconductor 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 Indie Semiconductor with a short position of CareMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indie Semiconductor and CareMax.
Diversification Opportunities for Indie Semiconductor and CareMax
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Indie and CareMax is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Indie Semiconductor Warrant and CareMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareMax and Indie Semiconductor 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 Indie Semiconductor Warrant 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 Indie Semiconductor i.e., Indie Semiconductor and CareMax go up and down completely randomly.
Pair Corralation between Indie Semiconductor and CareMax
If you would invest 0.58 in CareMax on September 14, 2024 and sell it today you would earn a total of 0.38 from holding CareMax or generate 65.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.14% |
| Values | Daily Returns |
Indie Semiconductor Warrant vs. CareMax
Performance |
| Timeline |
| Indie Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CareMax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Indie Semiconductor and CareMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indie Semiconductor and CareMax
The main advantage of trading using opposite Indie Semiconductor and CareMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indie Semiconductor 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.| Indie Semiconductor vs. Nuvve Holding Corp | Indie Semiconductor vs. EVgo Equity Warrants | Indie Semiconductor vs. Paysafe Ltd Wt | Indie Semiconductor vs. Microvast Holdings |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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