Correlation Between R1 RCM and American Well
Can any of the company-specific risk be diversified away by investing in both R1 RCM and American Well 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 R1 RCM and American Well into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between R1 RCM Inc and American Well Corp, you can compare the effects of market volatilities on R1 RCM and American Well 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 R1 RCM with a short position of American Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of R1 RCM and American Well.
Diversification Opportunities for R1 RCM and American Well
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between RCM and American is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding R1 RCM Inc and American Well Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Well Corp and R1 RCM 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 R1 RCM Inc are associated (or correlated) with American Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Well Corp has no effect on the direction of R1 RCM i.e., R1 RCM and American Well go up and down completely randomly.
Pair Corralation between R1 RCM and American Well
Considering the 90-day investment horizon R1 RCM Inc is expected to generate 0.01 times more return on investment than American Well. However, R1 RCM Inc is 109.04 times less risky than American Well. It trades about 0.49 of its potential returns per unit of risk. American Well Corp is currently generating about 0.0 per unit of risk. If you would invest 1,424 in R1 RCM Inc on October 20, 2024 and sell it today you would earn a total of 7.00 from holding R1 RCM Inc or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 36.07% |
| Values | Daily Returns |
R1 RCM Inc vs. American Well Corp
Performance |
| Timeline |
| R1 RCM Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
| American Well Corp |
R1 RCM and American Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with R1 RCM and American Well
The main advantage of trading using opposite R1 RCM and American Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if R1 RCM position performs unexpectedly, American Well 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 American Well will offset losses from the drop in American Well's long position.| R1 RCM vs. National Research Corp | R1 RCM vs. Definitive Healthcare Corp | R1 RCM vs. HealthStream | R1 RCM vs. Evolent Health |
| American Well vs. Doximity | American Well vs. Certara | American Well vs. Teladoc | American Well vs. Definitive Healthcare 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |