Correlation Between Progyny and Phreesia
Can any of the company-specific risk be diversified away by investing in both Progyny and Phreesia 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 Phreesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progyny and Phreesia, you can compare the effects of market volatilities on Progyny and Phreesia 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 Phreesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progyny and Phreesia.
Diversification Opportunities for Progyny and Phreesia
Very weak diversification
The 3 months correlation between Progyny and Phreesia is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Progyny and Phreesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phreesia 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 Phreesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phreesia has no effect on the direction of Progyny i.e., Progyny and Phreesia go up and down completely randomly.
Pair Corralation between Progyny and Phreesia
Given the investment horizon of 90 days Progyny is expected to under-perform the Phreesia. In addition to that, Progyny is 1.23 times more volatile than Phreesia. It trades about -0.07 of its total potential returns per unit of risk. Phreesia is currently generating about 0.06 per unit of volatility. If you would invest 2,025 in Phreesia on September 19, 2024 and sell it today you would earn a total of 461.00 from holding Phreesia or generate 22.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progyny vs. Phreesia
Performance |
| Timeline |
| Progyny |
| Phreesia |
Progyny and Phreesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progyny and Phreesia
The main advantage of trading using opposite Progyny and Phreesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progyny position performs unexpectedly, Phreesia 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 Phreesia will offset losses from the drop in Phreesia's long position.| Progyny vs. ASGN Inc | Progyny vs. Kforce Inc | Progyny vs. Kelly Services A | Progyny vs. Central Garden Pet |
| Phreesia vs. Definitive Healthcare Corp | Phreesia vs. HealthStream | Phreesia vs. Certara | Phreesia vs. National Research 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |