Correlation Between CareMax and Agiliti

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

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

Diversification Opportunities for CareMax and Agiliti

0.0

Correlation Coefficient

CareMax  Agiliti

Pay attention - limited upside

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

Pair Corralation between CareMax and Agiliti

If you would invest  1.30  in CareMax on December 29, 2024 and sell it today you would lose (1.29) from holding CareMax or give up 99.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CareMax  vs.  Agiliti

CareMax

Risk-Adjusted Performance

Very Weak

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

Agiliti

Risk-Adjusted Performance

Very Weak

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

Pair Trading with CareMax and Agiliti

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

The idea behind CareMax and Agiliti 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.