Correlation Between Progyny and American Well
Can any of the company-specific risk be diversified away by investing in both Progyny and American Well 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 American Well into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progyny and American Well Corp, you can compare the effects of market volatilities on Progyny and American Well 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 American Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progyny and American Well.
Diversification Opportunities for Progyny and American Well
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Progyny and American is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Progyny and American Well Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Well Corp 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 American Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Well Corp has no effect on the direction of Progyny i.e., Progyny and American Well go up and down completely randomly.
Pair Corralation between Progyny and American Well
Given the investment horizon of 90 days Progyny is expected to generate 0.77 times more return on investment than American Well. However, Progyny is 1.3 times less risky than American Well. It trades about 0.14 of its potential returns per unit of risk. American Well Corp is currently generating about 0.07 per unit of risk. If you would invest 1,618 in Progyny on October 31, 2024 and sell it today you would earn a total of 707.00 from holding Progyny or generate 43.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progyny vs. American Well Corp
Performance |
| Timeline |
| Progyny |
| American Well Corp |
Progyny and American Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progyny and American Well
The main advantage of trading using opposite Progyny and American Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progyny position performs unexpectedly, American Well 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 American Well will offset losses from the drop in American Well's long position.| Progyny vs. Veeva Systems Class | Progyny vs. Teladoc | Progyny vs. Goodrx Holdings | Progyny vs. 10X Genomics |
| American Well vs. Doximity | American Well vs. Certara | American Well vs. Teladoc | American Well vs. Definitive Healthcare Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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