Correlation Between NexGel Warrant and CareMax
Can any of the company-specific risk be diversified away by investing in both NexGel Warrant 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 NexGel Warrant and CareMax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NexGel Warrant and CareMax, you can compare the effects of market volatilities on NexGel Warrant 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 NexGel Warrant with a short position of CareMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of NexGel Warrant and CareMax.
Diversification Opportunities for NexGel Warrant and CareMax
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NexGel and CareMax is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding NexGel Warrant and CareMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareMax and NexGel Warrant 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 NexGel 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 NexGel Warrant i.e., NexGel Warrant and CareMax go up and down completely randomly.
Pair Corralation between NexGel Warrant and CareMax
Assuming the 90 days horizon NexGel Warrant is expected to generate 0.82 times more return on investment than CareMax. However, NexGel Warrant is 1.22 times less risky than CareMax. It trades about 0.04 of its potential returns per unit of risk. CareMax is currently generating about -0.24 per unit of risk. If you would invest 50.00 in NexGel Warrant on August 29, 2024 and sell it today you would lose (2.00) from holding NexGel Warrant or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NexGel Warrant vs. CareMax
Performance |
| Timeline |
| NexGel Warrant |
| CareMax |
NexGel Warrant and CareMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NexGel Warrant and CareMax
The main advantage of trading using opposite NexGel Warrant and CareMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NexGel Warrant 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.The idea behind NexGel Warrant and CareMax pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CareMax vs. Evolent Health | CareMax vs. Certara | CareMax vs. Privia Health Group | CareMax vs. HealthStream |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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