Correlation Between Goodrx Holdings and Accolade
Can any of the company-specific risk be diversified away by investing in both Goodrx Holdings and Accolade 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 Goodrx Holdings and Accolade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodrx Holdings and Accolade, you can compare the effects of market volatilities on Goodrx Holdings and Accolade 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 Goodrx Holdings with a short position of Accolade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodrx Holdings and Accolade.
Diversification Opportunities for Goodrx Holdings and Accolade
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goodrx and Accolade is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Goodrx Holdings and Accolade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accolade and Goodrx Holdings 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 Goodrx Holdings are associated (or correlated) with Accolade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accolade has no effect on the direction of Goodrx Holdings i.e., Goodrx Holdings and Accolade go up and down completely randomly.
Pair Corralation between Goodrx Holdings and Accolade
Given the investment horizon of 90 days Goodrx Holdings is expected to generate 0.91 times more return on investment than Accolade. However, Goodrx Holdings is 1.1 times less risky than Accolade. It trades about 0.01 of its potential returns per unit of risk. Accolade is currently generating about -0.01 per unit of risk. If you would invest 536.00 in Goodrx Holdings on August 24, 2024 and sell it today you would lose (107.00) from holding Goodrx Holdings or give up 19.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodrx Holdings vs. Accolade
Performance |
| Timeline |
| Goodrx Holdings |
| Accolade |
Goodrx Holdings and Accolade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodrx Holdings and Accolade
The main advantage of trading using opposite Goodrx Holdings and Accolade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodrx Holdings position performs unexpectedly, Accolade 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 Accolade will offset losses from the drop in Accolade's long position.| Goodrx Holdings vs. Teladoc | Goodrx Holdings vs. Talkspace | Goodrx Holdings vs. Accolade | Goodrx Holdings vs. Doximity |
| Accolade vs. Privia Health Group | Accolade vs. HealthStream | Accolade vs. National Research Corp | Accolade vs. Health Catalyst |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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