Correlation Between Progyny and Schrodinger
Can any of the company-specific risk be diversified away by investing in both Progyny and Schrodinger 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 Schrodinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progyny and Schrodinger, you can compare the effects of market volatilities on Progyny and Schrodinger 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 Schrodinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progyny and Schrodinger.
Diversification Opportunities for Progyny and Schrodinger
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Progyny and Schrodinger is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Progyny and Schrodinger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schrodinger 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 Schrodinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schrodinger has no effect on the direction of Progyny i.e., Progyny and Schrodinger go up and down completely randomly.
Pair Corralation between Progyny and Schrodinger
Given the investment horizon of 90 days Progyny is expected to under-perform the Schrodinger. But the stock apears to be less risky and, when comparing its historical volatility, Progyny is 1.29 times less risky than Schrodinger. The stock trades about -0.03 of its potential returns per unit of risk. The Schrodinger is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,663 in Schrodinger on August 28, 2024 and sell it today you would earn a total of 567.00 from holding Schrodinger or generate 34.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progyny vs. Schrodinger
Performance |
| Timeline |
| Progyny |
| Schrodinger |
Progyny and Schrodinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progyny and Schrodinger
The main advantage of trading using opposite Progyny and Schrodinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progyny position performs unexpectedly, Schrodinger 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 Schrodinger will offset losses from the drop in Schrodinger's long position.| Progyny vs. Veeva Systems Class | Progyny vs. Teladoc | Progyny vs. Goodrx Holdings | Progyny vs. 10X Genomics |
| Schrodinger vs. Veeva Systems Class | Schrodinger vs. Doximity | Schrodinger vs. American Well Corp | Schrodinger vs. GE HealthCare Technologies |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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