Correlation Between Lifestance Health and InnovAge Holding
Can any of the company-specific risk be diversified away by investing in both Lifestance Health 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 Lifestance Health and InnovAge Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifestance Health Group and InnovAge Holding Corp, you can compare the effects of market volatilities on Lifestance Health 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 Lifestance Health with a short position of InnovAge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifestance Health and InnovAge Holding.
Diversification Opportunities for Lifestance Health and InnovAge Holding
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lifestance and InnovAge is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lifestance Health Group 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 Lifestance Health 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 Lifestance Health Group 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 Lifestance Health i.e., Lifestance Health and InnovAge Holding go up and down completely randomly.
Pair Corralation between Lifestance Health and InnovAge Holding
Given the investment horizon of 90 days Lifestance Health Group is expected to generate 0.71 times more return on investment than InnovAge Holding. However, Lifestance Health Group is 1.41 times less risky than InnovAge Holding. It trades about 0.34 of its potential returns per unit of risk. InnovAge Holding Corp is currently generating about -0.4 per unit of risk. If you would invest 726.00 in Lifestance Health Group on October 22, 2024 and sell it today you would earn a total of 73.00 from holding Lifestance Health Group or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifestance Health Group vs. InnovAge Holding Corp
Performance |
| Timeline |
| Lifestance Health |
| InnovAge Holding Corp |
Lifestance Health and InnovAge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifestance Health and InnovAge Holding
The main advantage of trading using opposite Lifestance Health and InnovAge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifestance Health 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.| Lifestance Health vs. Pennant Group | Lifestance Health vs. Encompass Health Corp | Lifestance Health vs. Enhabit | Lifestance Health vs. Concord Medical Services |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |