Correlation Between Certara and Alignment Healthcare

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

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

Diversification Opportunities for Certara and Alignment Healthcare

0.0

Correlation Coefficient

Certara  Alignment Healthcare

Pay attention - limited upside

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

Pair Corralation between Certara and Alignment Healthcare

If you would invest (100.00) in Alignment Healthcare LLC on September 10, 2025 and sell it today you would earn a total of  100.00  from holding Alignment Healthcare LLC or generate -100.0% return on investment over 90 days.

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

Certara  vs.  Alignment Healthcare LLC

Certara

Risk-Adjusted Performance

Weakest

Over the last 90 days Certara has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Certara is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Alignment Healthcare LLC

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Alignment Healthcare LLC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, Alignment Healthcare exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Certara and Alignment Healthcare

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

The idea behind Certara and Alignment Healthcare LLC 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.