Correlation Between Progyny and Renalytix
Can any of the company-specific risk be diversified away by investing in both Progyny and Renalytix 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 Renalytix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progyny and Renalytix AI, you can compare the effects of market volatilities on Progyny and Renalytix 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 Renalytix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progyny and Renalytix.
Diversification Opportunities for Progyny and Renalytix
Very poor diversification
The 3 months correlation between Progyny and Renalytix is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Progyny and Renalytix AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renalytix AI 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 Renalytix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renalytix AI has no effect on the direction of Progyny i.e., Progyny and Renalytix go up and down completely randomly.
Pair Corralation between Progyny and Renalytix
Given the investment horizon of 90 days Progyny is expected to generate 0.99 times more return on investment than Renalytix. However, Progyny is 1.01 times less risky than Renalytix. It trades about 0.05 of its potential returns per unit of risk. Renalytix AI is currently generating about 0.02 per unit of risk. If you would invest 1,515 in Progyny on September 3, 2024 and sell it today you would earn a total of 44.00 from holding Progyny or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progyny vs. Renalytix AI
Performance |
| Timeline |
| Progyny |
| Renalytix AI |
Progyny and Renalytix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progyny and Renalytix
The main advantage of trading using opposite Progyny and Renalytix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progyny position performs unexpectedly, Renalytix 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 Renalytix will offset losses from the drop in Renalytix's long position.| Progyny vs. Veeva Systems Class | Progyny vs. Teladoc | Progyny vs. Goodrx Holdings | Progyny vs. 10X Genomics |
| Renalytix vs. Streamline Health Solutions | Renalytix vs. HealthStream | Renalytix vs. National Research Corp | Renalytix vs. Forian Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |