Correlation Between Bioventus and Progyny
Can any of the company-specific risk be diversified away by investing in both Bioventus and Progyny 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 Bioventus and Progyny into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bioventus and Progyny, you can compare the effects of market volatilities on Bioventus and Progyny 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 Bioventus with a short position of Progyny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bioventus and Progyny.
Diversification Opportunities for Bioventus and Progyny
Excellent diversification
The 3 months correlation between Bioventus and Progyny is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bioventus and Progyny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progyny and Bioventus 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 Bioventus are associated (or correlated) with Progyny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progyny has no effect on the direction of Bioventus i.e., Bioventus and Progyny go up and down completely randomly.
Pair Corralation between Bioventus and Progyny
Considering the 90-day investment horizon Bioventus is expected to generate 1.04 times more return on investment than Progyny. However, Bioventus is 1.04 times more volatile than Progyny. It trades about 0.13 of its potential returns per unit of risk. Progyny is currently generating about -0.08 per unit of risk. If you would invest 670.00 in Bioventus on August 31, 2024 and sell it today you would earn a total of 559.00 from holding Bioventus or generate 83.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bioventus vs. Progyny
Performance |
| Timeline |
| Bioventus |
| Progyny |
Bioventus and Progyny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bioventus and Progyny
The main advantage of trading using opposite Bioventus and Progyny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bioventus position performs unexpectedly, Progyny 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 Progyny will offset losses from the drop in Progyny's long position.| Bioventus vs. Tivic Health Systems | Bioventus vs. Bluejay Diagnostics | Bioventus vs. Heart Test Laboratories | Bioventus vs. Nuwellis |
| Progyny vs. Veeva Systems Class | Progyny vs. Teladoc | Progyny vs. Goodrx Holdings | Progyny vs. 10X Genomics |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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