Correlation Between Milestone Scientific and ModivCare
Can any of the company-specific risk be diversified away by investing in both Milestone Scientific and ModivCare 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 Milestone Scientific and ModivCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Milestone Scientific and ModivCare, you can compare the effects of market volatilities on Milestone Scientific and ModivCare 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 Milestone Scientific with a short position of ModivCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Milestone Scientific and ModivCare.
Diversification Opportunities for Milestone Scientific and ModivCare
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Milestone and ModivCare is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Milestone Scientific and ModivCare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ModivCare and Milestone Scientific 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 Milestone Scientific are associated (or correlated) with ModivCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ModivCare has no effect on the direction of Milestone Scientific i.e., Milestone Scientific and ModivCare go up and down completely randomly.
Pair Corralation between Milestone Scientific and ModivCare
Given the investment horizon of 90 days Milestone Scientific is expected to under-perform the ModivCare. But the stock apears to be less risky and, when comparing its historical volatility, Milestone Scientific is 4.25 times less risky than ModivCare. The stock trades about -0.13 of its potential returns per unit of risk. The ModivCare is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 147.00 in ModivCare on April 25, 2025 and sell it today you would earn a total of 176.00 from holding ModivCare or generate 119.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Milestone Scientific vs. ModivCare
Performance |
| Timeline |
| Milestone Scientific |
| ModivCare |
Milestone Scientific and ModivCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Milestone Scientific and ModivCare
The main advantage of trading using opposite Milestone Scientific and ModivCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Milestone Scientific position performs unexpectedly, ModivCare 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 ModivCare will offset losses from the drop in ModivCare's long position.| Milestone Scientific vs. InfuSystems Holdings | Milestone Scientific vs. STRATA Skin Sciences | Milestone Scientific vs. Retractable Technologies | Milestone Scientific vs. Insight Molecular Diagnostics |
| ModivCare vs. The Ensign Group | ModivCare vs. Select Medical Holdings | ModivCare vs. Encompass Health Corp | ModivCare vs. InnovAge Holding Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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