Correlation Between Progyny and Accolade
Can any of the company-specific risk be diversified away by investing in both Progyny 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 Progyny and Accolade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progyny and Accolade, you can compare the effects of market volatilities on Progyny 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 Progyny with a short position of Accolade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progyny and Accolade.
Diversification Opportunities for Progyny and Accolade
Poor diversification
The 3 months correlation between Progyny and Accolade is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Progyny and Accolade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accolade and Progyny 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 Progyny 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 Progyny i.e., Progyny and Accolade go up and down completely randomly.
Pair Corralation between Progyny and Accolade
Given the investment horizon of 90 days Progyny is expected to under-perform the Accolade. But the stock apears to be less risky and, when comparing its historical volatility, Progyny is 1.35 times less risky than Accolade. The stock trades about -0.07 of its potential returns per unit of risk. The Accolade is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 850.00 in Accolade on August 24, 2024 and sell it today you would lose (479.00) from holding Accolade or give up 56.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progyny vs. Accolade
Performance |
| Timeline |
| Progyny |
| Accolade |
Progyny and Accolade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progyny and Accolade
The main advantage of trading using opposite Progyny and Accolade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progyny 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.| Progyny vs. Veeva Systems Class | Progyny vs. Teladoc | Progyny vs. Goodrx Holdings | Progyny vs. 10X Genomics |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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