Correlation Between DocGo and InnovAge Holding
Can any of the company-specific risk be diversified away by investing in both DocGo and InnovAge Holding 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 DocGo and InnovAge Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DocGo Inc and InnovAge Holding Corp, you can compare the effects of market volatilities on DocGo and InnovAge Holding 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 DocGo with a short position of InnovAge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of DocGo and InnovAge Holding.
Diversification Opportunities for DocGo and InnovAge Holding
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DocGo and InnovAge is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding DocGo Inc and InnovAge Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InnovAge Holding Corp and DocGo 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 DocGo Inc are associated (or correlated) with InnovAge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InnovAge Holding Corp has no effect on the direction of DocGo i.e., DocGo and InnovAge Holding go up and down completely randomly.
Pair Corralation between DocGo and InnovAge Holding
Given the investment horizon of 90 days DocGo Inc is expected to generate 0.99 times more return on investment than InnovAge Holding. However, DocGo Inc is 1.01 times less risky than InnovAge Holding. It trades about 0.03 of its potential returns per unit of risk. InnovAge Holding Corp is currently generating about 0.02 per unit of risk. If you would invest 390.00 in DocGo Inc on September 1, 2024 and sell it today you would earn a total of 43.00 from holding DocGo Inc or generate 11.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DocGo Inc vs. InnovAge Holding Corp
Performance |
| Timeline |
| DocGo Inc |
| InnovAge Holding Corp |
DocGo and InnovAge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DocGo and InnovAge Holding
The main advantage of trading using opposite DocGo and InnovAge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DocGo position performs unexpectedly, InnovAge Holding 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 InnovAge Holding will offset losses from the drop in InnovAge Holding's long position.The idea behind DocGo Inc and InnovAge Holding 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.| InnovAge Holding vs. The Ensign Group | InnovAge Holding vs. Select Medical Holdings | InnovAge Holding vs. Encompass Health Corp | InnovAge Holding vs. Enhabit |
Check out your portfolio center.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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