Correlation Between Progyny and Certara
Can any of the company-specific risk be diversified away by investing in both Progyny and Certara 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 Certara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progyny and Certara, you can compare the effects of market volatilities on Progyny and Certara 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 Certara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progyny and Certara.
Diversification Opportunities for Progyny and Certara
Very weak diversification
The 3 months correlation between Progyny and Certara is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Progyny and Certara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Certara 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 Certara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Certara has no effect on the direction of Progyny i.e., Progyny and Certara go up and down completely randomly.
Pair Corralation between Progyny and Certara
Given the investment horizon of 90 days Progyny is expected to generate 1.26 times more return on investment than Certara. However, Progyny is 1.26 times more volatile than Certara. It trades about 0.14 of its potential returns per unit of risk. Certara is currently generating about 0.1 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. Certara
Performance |
| Timeline |
| Progyny |
| Certara |
Progyny and Certara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progyny and Certara
The main advantage of trading using opposite Progyny and Certara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progyny position performs unexpectedly, Certara 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 Certara will offset losses from the drop in Certara's long position.| Progyny vs. Veeva Systems Class | Progyny vs. Teladoc | Progyny vs. Goodrx Holdings | Progyny vs. 10X Genomics |
| Certara vs. National Research Corp | Certara vs. Health Catalyst | Certara vs. HealthStream | Certara vs. Privia Health Group |
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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