Correlation Between Doximity and Avinger
Can any of the company-specific risk be diversified away by investing in both Doximity and Avinger 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 Doximity and Avinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doximity and Avinger, you can compare the effects of market volatilities on Doximity and Avinger 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 Doximity with a short position of Avinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doximity and Avinger.
Diversification Opportunities for Doximity and Avinger
Excellent diversification
The 3 months correlation between Doximity and Avinger is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Doximity and Avinger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avinger and Doximity 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 Doximity are associated (or correlated) with Avinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avinger has no effect on the direction of Doximity i.e., Doximity and Avinger go up and down completely randomly.
Pair Corralation between Doximity and Avinger
Given the investment horizon of 90 days Doximity is expected to generate 2.61 times more return on investment than Avinger. However, Doximity is 2.61 times more volatile than Avinger. It trades about 0.13 of its potential returns per unit of risk. Avinger is currently generating about -0.02 per unit of risk. If you would invest 4,142 in Doximity on August 28, 2024 and sell it today you would earn a total of 733.00 from holding Doximity or generate 17.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doximity vs. Avinger
Performance |
| Timeline |
| Doximity |
| Avinger |
Doximity and Avinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doximity and Avinger
The main advantage of trading using opposite Doximity and Avinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doximity position performs unexpectedly, Avinger 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 Avinger will offset losses from the drop in Avinger's long position.| Doximity vs. HealthStream | Doximity vs. National Research Corp | Doximity vs. Forian Inc | Doximity vs. HealthEquity |
| Avinger vs. GlucoTrack | Avinger vs. Nexgel Inc | Avinger vs. Sharps Technology | Avinger vs. Innovative Eyewear |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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