Correlation Between Goodrx Holdings and National Research
Can any of the company-specific risk be diversified away by investing in both Goodrx Holdings and National Research 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 National Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodrx Holdings and National Research Corp, you can compare the effects of market volatilities on Goodrx Holdings and National Research 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 National Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodrx Holdings and National Research.
Diversification Opportunities for Goodrx Holdings and National Research
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goodrx and National is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Goodrx Holdings and National Research Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Research Corp 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 National Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Research Corp has no effect on the direction of Goodrx Holdings i.e., Goodrx Holdings and National Research go up and down completely randomly.
Pair Corralation between Goodrx Holdings and National Research
Given the investment horizon of 90 days Goodrx Holdings is expected to under-perform the National Research. In addition to that, Goodrx Holdings is 1.61 times more volatile than National Research Corp. It trades about -0.17 of its total potential returns per unit of risk. National Research Corp is currently generating about 0.07 per unit of volatility. If you would invest 1,830 in National Research Corp on August 25, 2024 and sell it today you would earn a total of 83.50 from holding National Research Corp or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodrx Holdings vs. National Research Corp
Performance |
| Timeline |
| Goodrx Holdings |
| National Research Corp |
Goodrx Holdings and National Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodrx Holdings and National Research
The main advantage of trading using opposite Goodrx Holdings and National Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodrx Holdings position performs unexpectedly, National Research 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 National Research will offset losses from the drop in National Research's long position.| Goodrx Holdings vs. Teladoc | Goodrx Holdings vs. Talkspace | Goodrx Holdings vs. Accolade | Goodrx Holdings vs. Doximity |
| National Research vs. Omega Flex | National Research vs. NI Holdings | National Research vs. PC Connection | National Research vs. Northrim BanCorp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |