Correlation Between Fulgent Genetics and DocGo

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

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

Diversification Opportunities for Fulgent Genetics and DocGo

0.0

Correlation Coefficient

Fulgent Genetics  DocGo

Pay attention - limited upside

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

Pair Corralation between Fulgent Genetics and DocGo

Given the investment horizon of 90 days Fulgent Genetics is expected to generate 0.6 times more return on investment than DocGo. However, Fulgent Genetics is 1.66 times less risky than DocGo. It trades about -0.04 of its potential returns per unit of risk. DocGo Inc is currently generating about -0.16 per unit of risk. If you would invest  1,842  in Fulgent Genetics on December 28, 2024 and sell it today you would lose (153.00) from holding Fulgent Genetics or give up 8.31% of portfolio value over 90 days.

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

Fulgent Genetics  vs.  DocGo Inc

Fulgent Genetics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fulgent Genetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

DocGo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days DocGo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Fulgent Genetics and DocGo

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

The idea behind Fulgent Genetics and DocGo Inc 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.