Correlation Between Veeva Systems and Progyny
Can any of the company-specific risk be diversified away by investing in both Veeva Systems 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 Veeva Systems and Progyny into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veeva Systems Class and Progyny, you can compare the effects of market volatilities on Veeva Systems 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 Veeva Systems with a short position of Progyny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veeva Systems and Progyny.
Diversification Opportunities for Veeva Systems and Progyny
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Veeva and Progyny is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Veeva Systems Class and Progyny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progyny and Veeva Systems 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 Veeva Systems Class 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 Veeva Systems i.e., Veeva Systems and Progyny go up and down completely randomly.
Pair Corralation between Veeva Systems and Progyny
Given the investment horizon of 90 days Veeva Systems Class is expected to generate 0.64 times more return on investment than Progyny. However, Veeva Systems Class is 1.56 times less risky than Progyny. It trades about 0.04 of its potential returns per unit of risk. Progyny is currently generating about -0.03 per unit of risk. If you would invest 16,531 in Veeva Systems Class on August 28, 2024 and sell it today you would earn a total of 6,164 from holding Veeva Systems Class or generate 37.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Veeva Systems Class vs. Progyny
Performance |
| Timeline |
| Veeva Systems Class |
| Progyny |
Veeva Systems and Progyny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veeva Systems and Progyny
The main advantage of trading using opposite Veeva Systems and Progyny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veeva Systems 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.| Veeva Systems vs. HealthStream | Veeva Systems vs. National Research Corp | Veeva Systems vs. Forian Inc | Veeva Systems vs. HealthEquity |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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