Correlation Between DarioHealth Corp and Progyny
Can any of the company-specific risk be diversified away by investing in both DarioHealth Corp 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 DarioHealth Corp and Progyny into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DarioHealth Corp and Progyny, you can compare the effects of market volatilities on DarioHealth Corp 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 DarioHealth Corp with a short position of Progyny. Check out your portfolio center. Please also check ongoing floating volatility patterns of DarioHealth Corp and Progyny.
Diversification Opportunities for DarioHealth Corp and Progyny
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DarioHealth and Progyny is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding DarioHealth Corp and Progyny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progyny and DarioHealth 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 DarioHealth Corp 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 DarioHealth Corp i.e., DarioHealth Corp and Progyny go up and down completely randomly.
Pair Corralation between DarioHealth Corp and Progyny
Given the investment horizon of 90 days DarioHealth Corp is expected to under-perform the Progyny. In addition to that, DarioHealth Corp is 1.21 times more volatile than Progyny. It trades about -0.08 of its total potential returns per unit of risk. Progyny is currently generating about -0.07 per unit of volatility. If you would invest 2,662 in Progyny on August 28, 2024 and sell it today you would lose (1,087) from holding Progyny or give up 40.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DarioHealth Corp vs. Progyny
Performance |
| Timeline |
| DarioHealth Corp |
| Progyny |
DarioHealth Corp and Progyny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DarioHealth Corp and Progyny
The main advantage of trading using opposite DarioHealth Corp and Progyny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DarioHealth Corp 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.| DarioHealth Corp vs. Burning Rock Biotech | DarioHealth Corp vs. Neuronetics | DarioHealth Corp vs. Sera Prognostics | DarioHealth Corp vs. Fonar |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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