Correlation Between CareCloud and Akili

Can any of the company-specific risk be diversified away by investing in both CareCloud and Akili 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 CareCloud and Akili into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CareCloud and Akili Inc, you can compare the effects of market volatilities on CareCloud and Akili 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 CareCloud with a short position of Akili. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareCloud and Akili.

Diversification Opportunities for CareCloud and Akili

0.68

Correlation Coefficient

CareCloud  Akili

Poor diversification

The 3 months correlation between CareCloud and Akili is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CareCloud and Akili Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akili Inc and CareCloud 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 CareCloud are associated (or correlated) with Akili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akili Inc has no effect on the direction of CareCloud i.e., CareCloud and Akili go up and down completely randomly.

Pair Corralation between CareCloud and Akili

If you would invest  252.00  in CareCloud on October 20, 2024 and sell it today you would earn a total of  27.00  from holding CareCloud or generate 10.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.61%
Values	Daily Returns

CareCloud  vs.  Akili Inc

CareCloud

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CareCloud are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak essential indicators, CareCloud exhibited solid returns over the last few months and may actually be approaching a breakup point.

Akili Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Akili Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong essential indicators, Akili is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with CareCloud and Akili

The main advantage of trading using opposite CareCloud and Akili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareCloud position performs unexpectedly, Akili 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 Akili will offset losses from the drop in Akili's long position.

The idea behind CareCloud and Akili Inc 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.