Correlation Between Goodrx Holdings and Ontrak
Can any of the company-specific risk be diversified away by investing in both Goodrx Holdings and Ontrak 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 Ontrak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodrx Holdings and Ontrak Inc, you can compare the effects of market volatilities on Goodrx Holdings and Ontrak 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 Ontrak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodrx Holdings and Ontrak.
Diversification Opportunities for Goodrx Holdings and Ontrak
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goodrx and Ontrak is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Goodrx Holdings and Ontrak Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ontrak Inc 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 Ontrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ontrak Inc has no effect on the direction of Goodrx Holdings i.e., Goodrx Holdings and Ontrak go up and down completely randomly.
Pair Corralation between Goodrx Holdings and Ontrak
Given the investment horizon of 90 days Goodrx Holdings is expected to under-perform the Ontrak. In addition to that, Goodrx Holdings is 2.07 times more volatile than Ontrak Inc. It trades about -0.17 of its total potential returns per unit of risk. Ontrak Inc is currently generating about -0.03 per unit of volatility. If you would invest 185.00 in Ontrak Inc on September 2, 2024 and sell it today you would lose (5.00) from holding Ontrak Inc or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodrx Holdings vs. Ontrak Inc
Performance |
| Timeline |
| Goodrx Holdings |
| Ontrak Inc |
Goodrx Holdings and Ontrak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodrx Holdings and Ontrak
The main advantage of trading using opposite Goodrx Holdings and Ontrak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodrx Holdings position performs unexpectedly, Ontrak 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 Ontrak will offset losses from the drop in Ontrak's long position.| Goodrx Holdings vs. Teladoc | Goodrx Holdings vs. Talkspace | Goodrx Holdings vs. Accolade | Goodrx Holdings vs. Doximity |
| Ontrak vs. American Well Corp | Ontrak vs. Root Inc | Ontrak vs. Goodrx Holdings | Ontrak vs. Bigcommerce Holdings |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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