Correlation Between Sharecare and Talkspace
Can any of the company-specific risk be diversified away by investing in both Sharecare and Talkspace 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 Sharecare and Talkspace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharecare and Talkspace, you can compare the effects of market volatilities on Sharecare and Talkspace 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 Sharecare with a short position of Talkspace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharecare and Talkspace.
Diversification Opportunities for Sharecare and Talkspace
Poor diversification
The 3 months correlation between Sharecare and Talkspace is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sharecare and Talkspace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talkspace and Sharecare 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 Sharecare are associated (or correlated) with Talkspace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talkspace has no effect on the direction of Sharecare i.e., Sharecare and Talkspace go up and down completely randomly.
Pair Corralation between Sharecare and Talkspace
Given the investment horizon of 90 days Sharecare is expected to generate 6.52 times less return on investment than Talkspace. But when comparing it to its historical volatility, Sharecare is 2.07 times less risky than Talkspace. It trades about 0.02 of its potential returns per unit of risk. Talkspace is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6.75 in Talkspace on September 14, 2024 and sell it today you would earn a total of 7.25 from holding Talkspace or generate 107.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.82% |
| Values | Daily Returns |
Sharecare vs. Talkspace
Performance |
| Timeline |
| Sharecare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Talkspace |
Sharecare and Talkspace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharecare and Talkspace
The main advantage of trading using opposite Sharecare and Talkspace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharecare position performs unexpectedly, Talkspace 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 Talkspace will offset losses from the drop in Talkspace's long position.| Sharecare vs. Privia Health Group | Sharecare vs. Evolent Health | Sharecare vs. HealthStream | Sharecare vs. Streamline Health Solutions |
| Talkspace vs. Microvast Holdings | Talkspace vs. Taboola Ltd Warrant | Talkspace vs. Katapult Holdings Equity |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| 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 | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |