Correlation Between Goodrx Holdings and Progyny
Can any of the company-specific risk be diversified away by investing in both Goodrx Holdings 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 Goodrx Holdings and Progyny into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodrx Holdings and Progyny, you can compare the effects of market volatilities on Goodrx Holdings 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 Goodrx Holdings with a short position of Progyny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodrx Holdings and Progyny.
Diversification Opportunities for Goodrx Holdings and Progyny
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goodrx and Progyny is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Goodrx Holdings and Progyny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progyny 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 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 Goodrx Holdings i.e., Goodrx Holdings and Progyny go up and down completely randomly.
Pair Corralation between Goodrx Holdings and Progyny
Given the investment horizon of 90 days Goodrx Holdings is expected to generate 1.29 times more return on investment than Progyny. However, Goodrx Holdings is 1.29 times more volatile than Progyny. It trades about 0.02 of its potential returns per unit of risk. Progyny is currently generating about -0.03 per unit of risk. If you would invest 498.00 in Goodrx Holdings on August 28, 2024 and sell it today you would lose (9.00) from holding Goodrx Holdings or give up 1.81% 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. Progyny
Performance |
| Timeline |
| Goodrx Holdings |
| Progyny |
Goodrx Holdings and Progyny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodrx Holdings and Progyny
The main advantage of trading using opposite Goodrx Holdings and Progyny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodrx Holdings 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.| Goodrx Holdings vs. Teladoc | Goodrx Holdings vs. Talkspace | Goodrx Holdings vs. Accolade | Goodrx Holdings vs. Doximity |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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