Correlation Between DocGo and Auna SA

Can any of the company-specific risk be diversified away by investing in both DocGo and Auna SA 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 DocGo and Auna SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DocGo Inc and Auna SA, you can compare the effects of market volatilities on DocGo and Auna SA 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 DocGo with a short position of Auna SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DocGo and Auna SA.

Diversification Opportunities for DocGo and Auna SA

-0.03

Correlation Coefficient

DocGo  Auna SA

Good diversification

The 3 months correlation between DocGo and Auna is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding DocGo Inc and Auna SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auna SA and DocGo 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 DocGo Inc are associated (or correlated) with Auna SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auna SA has no effect on the direction of DocGo i.e., DocGo and Auna SA go up and down completely randomly.

Pair Corralation between DocGo and Auna SA

Given the investment horizon of 90 days DocGo Inc is expected to generate 1.17 times more return on investment than Auna SA. However, DocGo is 1.17 times more volatile than Auna SA. It trades about 0.05 of its potential returns per unit of risk. Auna SA is currently generating about 0.01 per unit of risk. If you would invest  420.00  in DocGo Inc on October 5, 2024 and sell it today you would earn a total of  9.00  from holding DocGo Inc or generate 2.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

DocGo Inc  vs.  Auna SA

DocGo Inc

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in DocGo Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, DocGo displayed solid returns over the last few months and may actually be approaching a breakup point.

Auna SA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Auna SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Auna SA is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with DocGo and Auna SA

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

The idea behind DocGo Inc and Auna SA 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.

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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.