Correlation Between R1 RCM and Option Care
Can any of the company-specific risk be diversified away by investing in both R1 RCM and Option Care 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 Option Care 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 Option Care Health, you can compare the effects of market volatilities on R1 RCM and Option Care 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 Option Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of R1 RCM and Option Care.
Diversification Opportunities for R1 RCM and Option Care
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RCM and Option is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding R1 RCM Inc and Option Care Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Option Care Health 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 Option Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Option Care Health has no effect on the direction of R1 RCM i.e., R1 RCM and Option Care go up and down completely randomly.
Pair Corralation between R1 RCM and Option Care
If you would invest 2,916 in Option Care Health on November 18, 2024 and sell it today you would earn a total of 230.00 from holding Option Care Health or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
R1 RCM Inc vs. Option Care Health
Performance |
| Timeline |
| R1 RCM Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Option Care Health |
R1 RCM and Option Care Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with R1 RCM and Option Care
The main advantage of trading using opposite R1 RCM and Option Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if R1 RCM position performs unexpectedly, Option Care 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 Option Care will offset losses from the drop in Option Care's long position.| R1 RCM vs. National Research Corp | R1 RCM vs. Definitive Healthcare Corp | R1 RCM vs. HealthStream | R1 RCM vs. Evolent Health |
| Option Care vs. Addus HomeCare | Option Care vs. Acadia Healthcare | Option Care vs. Encompass Health Corp | Option Care vs. Select Medical 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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