Correlation Between Alignment Healthcare and COMPREHENSIVE CARE

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Can any of the company-specific risk be diversified away by investing in both Alignment Healthcare and COMPREHENSIVE 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 Alignment Healthcare and COMPREHENSIVE CARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alignment Healthcare and COMPREHENSIVE CARE CORP, you can compare the effects of market volatilities on Alignment Healthcare and COMPREHENSIVE 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 Alignment Healthcare with a short position of COMPREHENSIVE CARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alignment Healthcare and COMPREHENSIVE CARE.

Diversification Opportunities for Alignment Healthcare and COMPREHENSIVE CARE

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Alignment and COMPREHENSIVE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alignment Healthcare and COMPREHENSIVE CARE CORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMPREHENSIVE CARE CORP and Alignment Healthcare 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 Alignment Healthcare are associated (or correlated) with COMPREHENSIVE CARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMPREHENSIVE CARE CORP has no effect on the direction of Alignment Healthcare i.e., Alignment Healthcare and COMPREHENSIVE CARE go up and down completely randomly.

Pair Corralation between Alignment Healthcare and COMPREHENSIVE CARE

Given the investment horizon of 90 days Alignment Healthcare is expected to generate 0.3 times more return on investment than COMPREHENSIVE CARE. However, Alignment Healthcare is 3.36 times less risky than COMPREHENSIVE CARE. It trades about -0.02 of its potential returns per unit of risk. COMPREHENSIVE CARE CORP is currently generating about -0.01 per unit of risk. If you would invest  2,277  in Alignment Healthcare on July 2, 2022 and sell it today you would lose (1,062)  from holding Alignment Healthcare or give up 46.64% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy99.73%
ValuesDaily Returns

Alignment Healthcare  vs.  COMPREHENSIVE CARE CORP

 Performance (%) 
       Timeline  
Alignment Healthcare 
Alignment Performance
0 of 100
Over the last 90 days Alignment Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical indicators, Alignment Healthcare is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Alignment Price Channel

COMPREHENSIVE CARE CORP 
COMPREHENSIVE Performance
0 of 100
Over the last 90 days COMPREHENSIVE CARE CORP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, COMPREHENSIVE CARE is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

COMPREHENSIVE Price Channel

Alignment Healthcare and COMPREHENSIVE CARE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Alignment Healthcare and COMPREHENSIVE CARE

The main advantage of trading using opposite Alignment Healthcare and COMPREHENSIVE CARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alignment Healthcare position performs unexpectedly, COMPREHENSIVE 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 COMPREHENSIVE CARE will offset losses from the drop in COMPREHENSIVE CARE's long position.
Alignment Healthcare vs. Amazon Inc
The idea behind Alignment Healthcare and COMPREHENSIVE CARE CORP 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.
COMPREHENSIVE CARE vs. Amazon Inc
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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