Correlation Between Alignment Healthcare and Fubotv

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

By analyzing existing cross correlation between Alignment Healthcare LLC and Fubotv Inc, you can compare the effects of market volatilities on Alignment Healthcare and Fubotv 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 Fubotv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alignment Healthcare and Fubotv.

Diversification Opportunities for Alignment Healthcare and Fubotv

-0.19

Correlation Coefficient

Alignment Healthcare  Fubotv

Good diversification

The 3 months correlation between Alignment and Fubotv is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Alignment Healthcare LLC and Fubotv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubotv Inc 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 LLC are associated (or correlated) with Fubotv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubotv Inc has no effect on the direction of Alignment Healthcare i.e., Alignment Healthcare and Fubotv go up and down completely randomly.

Pair Corralation between Alignment Healthcare and Fubotv

Given the investment horizon of 90 days Alignment Healthcare LLC is expected to generate 0.72 times more return on investment than Fubotv. However, Alignment Healthcare LLC is 1.39 times less risky than Fubotv. It trades about 0.05 of its potential returns per unit of risk. Fubotv Inc is currently generating about 0.01 per unit of risk. If you would invest  1,476  in Alignment Healthcare LLC on May 26, 2025 and sell it today you would earn a total of  108.00  from holding Alignment Healthcare LLC or generate 7.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Alignment Healthcare LLC  vs.  Fubotv Inc

Alignment Healthcare LLC

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Alignment Healthcare LLC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent technical indicators, Alignment Healthcare may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Fubotv Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Fubotv Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, Fubotv is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Alignment Healthcare and Fubotv

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

The idea behind Alignment Healthcare LLC and Fubotv 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.