Correlation Between Adapthealth Corp and Porch

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

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

Diversification Opportunities for Adapthealth Corp and Porch

0.57

Correlation Coefficient

Adapthealth Corp  Porch

Very weak diversification

The 3 months correlation between Adapthealth and Porch is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Adapthealth Corp and Porch Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porch Group and Adapthealth Corp 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 Adapthealth Corp are associated (or correlated) with Porch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porch Group has no effect on the direction of Adapthealth Corp i.e., Adapthealth Corp and Porch go up and down completely randomly.

Pair Corralation between Adapthealth Corp and Porch

Given the investment horizon of 90 days Adapthealth Corp is expected to generate 1.17 times less return on investment than Porch. But when comparing it to its historical volatility, Adapthealth Corp is 1.56 times less risky than Porch. It trades about 0.14 of its potential returns per unit of risk. Porch Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,065  in Porch Group on May 7, 2025 and sell it today you would earn a total of  251.00  from holding Porch Group or generate 23.57% return on investment over 90 days.

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

Adapthealth Corp  vs.  Porch Group

Adapthealth Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Adapthealth Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Adapthealth Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

Porch Group

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Porch Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent fundamental indicators, Porch demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Adapthealth Corp and Porch

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

The idea behind Adapthealth Corp and Porch Group 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.