Correlation Between R1 RCM and Progyny
Can any of the company-specific risk be diversified away by investing in both R1 RCM and Progyny 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 Progyny 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 Progyny, you can compare the effects of market volatilities on R1 RCM and Progyny 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 Progyny. Check out your portfolio center. Please also check ongoing floating volatility patterns of R1 RCM and Progyny.
Diversification Opportunities for R1 RCM and Progyny
Excellent diversification
The 3 months correlation between RCM and Progyny is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding R1 RCM Inc and Progyny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progyny 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 Progyny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progyny has no effect on the direction of R1 RCM i.e., R1 RCM and Progyny go up and down completely randomly.
Pair Corralation between R1 RCM and Progyny
Considering the 90-day investment horizon R1 RCM is expected to generate 20.1 times less return on investment than Progyny. But when comparing it to its historical volatility, R1 RCM Inc is 43.27 times less risky than Progyny. It trades about 0.3 of its potential returns per unit of risk. Progyny is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,618 in Progyny on October 31, 2024 and sell it today you would earn a total of 707.00 from holding Progyny or generate 43.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 43.9% |
| Values | Daily Returns |
R1 RCM Inc vs. Progyny
Performance |
| Timeline |
| R1 RCM Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
| Progyny |
R1 RCM and Progyny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with R1 RCM and Progyny
The main advantage of trading using opposite R1 RCM and Progyny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if R1 RCM position performs unexpectedly, Progyny 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 Progyny will offset losses from the drop in Progyny's long position.| R1 RCM vs. National Research Corp | R1 RCM vs. Definitive Healthcare Corp | R1 RCM vs. HealthStream | R1 RCM vs. Evolent Health |
| Progyny vs. Veeva Systems Class | Progyny vs. Teladoc | Progyny vs. Goodrx Holdings | Progyny vs. 10X Genomics |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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