Correlation Between Progyny and Doximity
Can any of the company-specific risk be diversified away by investing in both Progyny and Doximity 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 Doximity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progyny and Doximity, you can compare the effects of market volatilities on Progyny and Doximity 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 Doximity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progyny and Doximity.
Diversification Opportunities for Progyny and Doximity
Excellent diversification
The 3 months correlation between Progyny and Doximity is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Progyny and Doximity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doximity 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 Doximity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doximity has no effect on the direction of Progyny i.e., Progyny and Doximity go up and down completely randomly.
Pair Corralation between Progyny and Doximity
Given the investment horizon of 90 days Progyny is expected to generate 10.12 times less return on investment than Doximity. But when comparing it to its historical volatility, Progyny is 1.68 times less risky than Doximity. It trades about 0.02 of its potential returns per unit of risk. Doximity is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,142 in Doximity on August 28, 2024 and sell it today you would earn a total of 733.00 from holding Doximity or generate 17.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progyny vs. Doximity
Performance |
| Timeline |
| Progyny |
| Doximity |
Progyny and Doximity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progyny and Doximity
The main advantage of trading using opposite Progyny and Doximity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progyny position performs unexpectedly, Doximity 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 Doximity will offset losses from the drop in Doximity's long position.| Progyny vs. Veeva Systems Class | Progyny vs. Teladoc | Progyny vs. Goodrx Holdings | Progyny vs. 10X Genomics |
| Doximity vs. HealthStream | Doximity vs. National Research Corp | Doximity vs. Forian Inc | Doximity vs. HealthEquity |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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