Correlation Between Guardian Pharmacy and DocGo

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

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

Diversification Opportunities for Guardian Pharmacy and DocGo

0.83

Correlation Coefficient

Guardian Pharmacy  DocGo

Very poor diversification

The 3 months correlation between Guardian and DocGo is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Pharmacy Services, and DocGo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DocGo Inc and Guardian Pharmacy 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 Guardian Pharmacy Services, 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 Guardian Pharmacy i.e., Guardian Pharmacy and DocGo go up and down completely randomly.

Pair Corralation between Guardian Pharmacy and DocGo

Given the investment horizon of 90 days Guardian Pharmacy Services, is expected to under-perform the DocGo. In addition to that, Guardian Pharmacy is 1.57 times more volatile than DocGo Inc. It trades about -0.24 of its total potential returns per unit of risk. DocGo Inc is currently generating about 0.09 per unit of volatility. If you would invest  411.00  in DocGo Inc on October 6, 2024 and sell it today you would earn a total of  18.00  from holding DocGo Inc or generate 4.38% return on investment over 90 days.

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

Guardian Pharmacy Services,  vs.  DocGo Inc

Guardian Pharmacy

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guardian Pharmacy Services, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent fundamental indicators, Guardian Pharmacy displayed solid returns over the last few months and may actually be approaching a breakup point.

DocGo Inc

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in DocGo Inc are ranked lower than 15 (%) 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.

Pair Trading with Guardian Pharmacy and DocGo

The main advantage of trading using opposite Guardian Pharmacy and DocGo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Pharmacy 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 Guardian Pharmacy Services, 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.