Correlation Between Icad and Augmedix

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

Diversification Opportunities for Icad and Augmedix

-0.51
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Icad and Augmedix is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Icad Inc and Augmedix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augmedix and Icad 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 Icad Inc are associated (or correlated) with Augmedix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augmedix has no effect on the direction of Icad i.e., Icad and Augmedix go up and down completely randomly.

Pair Corralation between Icad and Augmedix

Given the investment horizon of 90 days Icad Inc is expected to under-perform the Augmedix. But the stock apears to be less risky and, when comparing its historical volatility, Icad Inc is 1.43 times less risky than Augmedix. The stock trades about -0.22 of its potential returns per unit of risk. The Augmedix is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  170.00  in Augmedix on June 28, 2022 and sell it today you would lose (21.00)  from holding Augmedix or give up 12.35% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Icad Inc  vs.  Augmedix

 Performance (%) 
       Timeline  
Icad Inc 
Icad Performance
0 of 100
Over the last 90 days Icad Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in October 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Icad Price Channel

Augmedix 
Augmedix Performance
0 of 100
Over the last 90 days Augmedix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Augmedix is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Augmedix Price Channel

Icad and Augmedix Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Icad and Augmedix

The main advantage of trading using opposite Icad and Augmedix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icad position performs unexpectedly, Augmedix 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 Augmedix will offset losses from the drop in Augmedix's long position.
Icad vs. Clearwater Paper Corp
The idea behind Icad Inc and Augmedix 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.
Augmedix vs. Clearwater Paper 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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