Correlation Between Phreesia and So Young
Can any of the company-specific risk be diversified away by investing in both Phreesia and So Young 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 Phreesia and So Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phreesia and So Young International, you can compare the effects of market volatilities on Phreesia and So Young 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 Phreesia with a short position of So Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phreesia and So Young.
Diversification Opportunities for Phreesia and So Young
Very good diversification
The 3 months correlation between Phreesia and So Young is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Phreesia and So Young International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on So Young International and Phreesia 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 Phreesia are associated (or correlated) with So Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of So Young International has no effect on the direction of Phreesia i.e., Phreesia and So Young go up and down completely randomly.
Pair Corralation between Phreesia and So Young
Considering the 90-day investment horizon Phreesia is expected to generate 0.76 times more return on investment than So Young. However, Phreesia is 1.32 times less risky than So Young. It trades about 0.16 of its potential returns per unit of risk. So Young International is currently generating about -0.02 per unit of risk. If you would invest 1,829 in Phreesia on September 1, 2024 and sell it today you would earn a total of 274.00 from holding Phreesia or generate 14.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phreesia vs. So Young International
Performance |
| Timeline |
| Phreesia |
| So Young International |
Phreesia and So Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phreesia and So Young
The main advantage of trading using opposite Phreesia and So Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phreesia position performs unexpectedly, So Young 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 So Young will offset losses from the drop in So Young's long position.| Phreesia vs. Definitive Healthcare Corp | Phreesia vs. HealthStream | Phreesia vs. Certara | Phreesia vs. National Research Corp |
| So Young vs. National Research Corp | So Young vs. Definitive Healthcare Corp | So Young vs. HealthStream | So Young vs. Streamline Health Solutions |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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