Correlation Between Nutex Health and InnovAge Holding
Can any of the company-specific risk be diversified away by investing in both Nutex 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 Nutex 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 Nutex Health and InnovAge Holding Corp, you can compare the effects of market volatilities on Nutex 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 Nutex Health with a short position of InnovAge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nutex Health and InnovAge Holding.
Diversification Opportunities for Nutex Health and InnovAge Holding
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nutex and InnovAge is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Nutex Health 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 Nutex 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 Nutex Health 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 Nutex Health i.e., Nutex Health and InnovAge Holding go up and down completely randomly.
Pair Corralation between Nutex Health and InnovAge Holding
Given the investment horizon of 90 days Nutex Health is expected to generate 3.45 times more return on investment than InnovAge Holding. However, Nutex Health is 3.45 times more volatile than InnovAge Holding Corp. It trades about 0.21 of its potential returns per unit of risk. InnovAge Holding Corp is currently generating about -0.31 per unit of risk. If you would invest 2,400 in Nutex Health on August 29, 2024 and sell it today you would earn a total of 1,076 from holding Nutex Health or generate 44.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nutex Health vs. InnovAge Holding Corp
Performance |
| Timeline |
| Nutex Health |
| InnovAge Holding Corp |
Nutex Health and InnovAge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nutex Health and InnovAge Holding
The main advantage of trading using opposite Nutex Health and InnovAge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nutex 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.| Nutex Health vs. FOXO Technologies | Nutex Health vs. Heartbeam | Nutex Health vs. EUDA Health Holdings | Nutex Health vs. Privia Health Group |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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