Correlation Between C and CareRx Corp

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

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

Diversification Opportunities for C and CareRx Corp

0.23

Correlation Coefficient

C  CareRx Corp

Modest diversification

The 3 months correlation between C and CareRx is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding C Com Satellite Systems and CareRx Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareRx Corp and C 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 C Com Satellite Systems are associated (or correlated) with CareRx Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareRx Corp has no effect on the direction of C i.e., C and CareRx Corp go up and down completely randomly.

Pair Corralation between C and CareRx Corp

Assuming the 90 days horizon C is expected to generate 1.61 times less return on investment than CareRx Corp. In addition to that, C is 2.09 times more volatile than CareRx Corp. It trades about 0.02 of its total potential returns per unit of risk. CareRx Corp is currently generating about 0.06 per unit of volatility. If you would invest  265.00  in CareRx Corp on April 22, 2025 and sell it today you would earn a total of  16.00  from holding CareRx Corp or generate 6.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

C Com Satellite Systems  vs.  CareRx Corp

C Com Satellite

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in C Com Satellite Systems are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, C is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

CareRx Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CareRx Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, CareRx Corp may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with C and CareRx Corp

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

The idea behind C Com Satellite Systems and CareRx 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..