Correlation Between DocGo and CareCloud

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

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

Diversification Opportunities for DocGo and CareCloud

0.61

Correlation Coefficient

DocGo  CareCloud

Poor diversification

The 3 months correlation between DocGo and CareCloud is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding DocGo Inc and CareCloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareCloud 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 CareCloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareCloud has no effect on the direction of DocGo i.e., DocGo and CareCloud go up and down completely randomly.

Pair Corralation between DocGo and CareCloud

Given the investment horizon of 90 days DocGo Inc is expected to under-perform the CareCloud. In addition to that, DocGo is 1.14 times more volatile than CareCloud. It trades about -0.13 of its total potential returns per unit of risk. CareCloud is currently generating about -0.01 per unit of volatility. If you would invest  318.00  in CareCloud on August 24, 2025 and sell it today you would lose (24.00) from holding CareCloud or give up 7.55% of portfolio value over 90 days.

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

DocGo Inc  vs.  CareCloud

DocGo Inc

Risk-Adjusted Performance

Weakest

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 December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

CareCloud

Risk-Adjusted Performance

Weakest

Over the last 90 days CareCloud has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, CareCloud is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with DocGo and CareCloud

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

The idea behind DocGo Inc and CareCloud 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.