Correlation Between R1 RCM and Goodrx Holdings
Can any of the company-specific risk be diversified away by investing in both R1 RCM and Goodrx Holdings 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 R1 RCM and Goodrx Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between R1 RCM Inc and Goodrx Holdings, you can compare the effects of market volatilities on R1 RCM and Goodrx Holdings 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 R1 RCM with a short position of Goodrx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of R1 RCM and Goodrx Holdings.
Diversification Opportunities for R1 RCM and Goodrx Holdings
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RCM and Goodrx is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding R1 RCM Inc and Goodrx Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodrx Holdings and R1 RCM 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 R1 RCM Inc are associated (or correlated) with Goodrx Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodrx Holdings has no effect on the direction of R1 RCM i.e., R1 RCM and Goodrx Holdings go up and down completely randomly.
Pair Corralation between R1 RCM and Goodrx Holdings
Considering the 90-day investment horizon R1 RCM Inc is expected to generate 0.01 times more return on investment than Goodrx Holdings. However, R1 RCM Inc is 106.59 times less risky than Goodrx Holdings. It trades about 0.5 of its potential returns per unit of risk. Goodrx Holdings is currently generating about -0.17 per unit of risk. If you would invest 1,426 in R1 RCM Inc on September 2, 2024 and sell it today you would earn a total of 5.00 from holding R1 RCM Inc or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 61.9% |
| Values | Daily Returns |
R1 RCM Inc vs. Goodrx Holdings
Performance |
| Timeline |
| R1 RCM Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Goodrx Holdings |
R1 RCM and Goodrx Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with R1 RCM and Goodrx Holdings
The main advantage of trading using opposite R1 RCM and Goodrx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if R1 RCM position performs unexpectedly, Goodrx Holdings 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 Goodrx Holdings will offset losses from the drop in Goodrx Holdings' long position.| R1 RCM vs. National Research Corp | R1 RCM vs. Definitive Healthcare Corp | R1 RCM vs. HealthStream | R1 RCM vs. Evolent Health |
| Goodrx Holdings vs. Teladoc | Goodrx Holdings vs. Talkspace | Goodrx Holdings vs. Accolade | Goodrx Holdings vs. Doximity |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |