Correlation Between Astrana Health and InnovAge Holding

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

Diversification Opportunities for Astrana Health and InnovAge Holding

0.0

Correlation Coefficient

Astrana Health  InnovAge Holding

Pay attention - limited upside

The 3 months correlation between Astrana and InnovAge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astrana 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 Astrana 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 Astrana 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 Astrana Health i.e., Astrana Health and InnovAge Holding go up and down completely randomly.

Pair Corralation between Astrana Health and InnovAge Holding

If you would invest (100.00) in Astrana Health on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Astrana Health or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Astrana Health  vs.  InnovAge Holding Corp

Astrana Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Astrana Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Astrana Health is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

InnovAge Holding Corp

Risk-Adjusted Performance

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 unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Astrana Health and InnovAge Holding

The main advantage of trading using opposite Astrana Health and InnovAge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astrana 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.

The idea behind Astrana Health and InnovAge Holding Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.