Correlation Between InnovAge Holding and Surgery Partners
Can any of the company-specific risk be diversified away by investing in both InnovAge Holding and Surgery Partners 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 Surgery Partners 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 Surgery Partners, you can compare the effects of market volatilities on InnovAge Holding and Surgery Partners 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 Surgery Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of InnovAge Holding and Surgery Partners.
Diversification Opportunities for InnovAge Holding and Surgery Partners
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between InnovAge and Surgery is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding InnovAge Holding Corp and Surgery Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgery Partners 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 Surgery Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgery Partners has no effect on the direction of InnovAge Holding i.e., InnovAge Holding and Surgery Partners go up and down completely randomly.
Pair Corralation between InnovAge Holding and Surgery Partners
Given the investment horizon of 90 days InnovAge Holding Corp is expected to generate 0.69 times more return on investment than Surgery Partners. However, InnovAge Holding Corp is 1.46 times less risky than Surgery Partners. It trades about -0.33 of its potential returns per unit of risk. Surgery Partners is currently generating about -0.24 per unit of risk. If you would invest 585.00 in InnovAge Holding Corp on August 28, 2024 and sell it today you would lose (110.00) from holding InnovAge Holding Corp or give up 18.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
InnovAge Holding Corp vs. Surgery Partners
Performance |
| Timeline |
| InnovAge Holding Corp |
| Surgery Partners |
InnovAge Holding and Surgery Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InnovAge Holding and Surgery Partners
The main advantage of trading using opposite InnovAge Holding and Surgery Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InnovAge Holding position performs unexpectedly, Surgery Partners 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 Surgery Partners will offset losses from the drop in Surgery Partners' long position.| InnovAge Holding vs. The Ensign Group | InnovAge Holding vs. Select Medical Holdings | InnovAge Holding vs. Encompass Health Corp | InnovAge Holding vs. Enhabit |
| Surgery Partners vs. Pennant Group | Surgery Partners vs. The Ensign Group | Surgery Partners vs. Encompass Health Corp | Surgery Partners vs. Healthcare Services Group |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |