Correlation Between InnovAge Holding and CryoCell International
Can any of the company-specific risk be diversified away by investing in both InnovAge Holding and CryoCell International 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 InnovAge Holding and CryoCell International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InnovAge Holding Corp and CryoCell International, you can compare the effects of market volatilities on InnovAge Holding and CryoCell International 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 InnovAge Holding with a short position of CryoCell International. Check out your portfolio center. Please also check ongoing floating volatility patterns of InnovAge Holding and CryoCell International.
Diversification Opportunities for InnovAge Holding and CryoCell International
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between InnovAge and CryoCell is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding InnovAge Holding Corp and CryoCell International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryoCell International and InnovAge Holding 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 InnovAge Holding Corp are associated (or correlated) with CryoCell International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryoCell International has no effect on the direction of InnovAge Holding i.e., InnovAge Holding and CryoCell International go up and down completely randomly.
Pair Corralation between InnovAge Holding and CryoCell International
Given the investment horizon of 90 days InnovAge Holding Corp is expected to under-perform the CryoCell International. But the stock apears to be less risky and, when comparing its historical volatility, InnovAge Holding Corp is 1.35 times less risky than CryoCell International. The stock trades about -0.27 of its potential returns per unit of risk. The CryoCell International is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 713.00 in CryoCell International on September 1, 2024 and sell it today you would earn a total of 196.00 from holding CryoCell International or generate 27.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
InnovAge Holding Corp vs. CryoCell International
Performance |
| Timeline |
| InnovAge Holding Corp |
| CryoCell International |
InnovAge Holding and CryoCell International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InnovAge Holding and CryoCell International
The main advantage of trading using opposite InnovAge Holding and CryoCell International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InnovAge Holding position performs unexpectedly, CryoCell International 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 CryoCell International will offset losses from the drop in CryoCell International's long position.| InnovAge Holding vs. The Ensign Group | InnovAge Holding vs. Select Medical Holdings | InnovAge Holding vs. Encompass Health Corp | InnovAge Holding vs. Enhabit |
| CryoCell International vs. National HealthCare | CryoCell International vs. InnovAge Holding Corp | CryoCell International vs. Pennant Group | CryoCell International vs. Encompass Health Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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