Correlation Between InnovAge Holding and JD Health

Can any of the company-specific risk be diversified away by investing in both InnovAge Holding and JD Health 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 JD Health 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 JD Health International, you can compare the effects of market volatilities on InnovAge Holding and JD Health 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 JD Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of InnovAge Holding and JD Health.

Diversification Opportunities for InnovAge Holding and JD Health

0.0

Correlation Coefficient

InnovAge Holding  JD Health

Pay attention - limited upside

The 3 months correlation between InnovAge and JDHIF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding InnovAge Holding Corp and JD Health International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Health 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 JD Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Health International has no effect on the direction of InnovAge Holding i.e., InnovAge Holding and JD Health go up and down completely randomly.

Pair Corralation between InnovAge Holding and JD Health

If you would invest  313.00  in JD Health International on September 5, 2024 and sell it today you would earn a total of  0.00  from holding JD Health International or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.82%
Values	Daily Returns

InnovAge Holding Corp  vs.  JD Health International

InnovAge Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days InnovAge Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

JD Health International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JD Health International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, JD Health is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with InnovAge Holding and JD Health

The main advantage of trading using opposite InnovAge Holding and JD Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InnovAge Holding position performs unexpectedly, JD Health 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 JD Health will offset losses from the drop in JD Health's long position.

The idea behind InnovAge Holding Corp and JD Health International 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.

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.