Correlation Between Healthequity and GoodRx Holdings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Healthequity 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 Healthequity and GoodRx Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthequity and GoodRx Holdings, you can compare the effects of market volatilities on Healthequity 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 Healthequity with a short position of GoodRx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthequity and GoodRx Holdings.

Diversification Opportunities for Healthequity and GoodRx Holdings

-0.19
  Correlation Coefficient

Good diversification

The 3 months correlation between Healthequity and GoodRx is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Healthequity and GoodRx Holdings Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoodRx Holdings and Healthequity 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 Healthequity 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 Healthequity i.e., Healthequity and GoodRx Holdings go up and down completely randomly.

Pair Corralation between Healthequity and GoodRx Holdings

Considering the 90-day investment horizon Healthequity is expected to under-perform the GoodRx Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Healthequity is 1.77 times less risky than GoodRx Holdings. The stock trades about -0.02 of its potential returns per unit of risk. The GoodRx Holdings is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  638.00  in GoodRx Holdings on May 11, 2022 and sell it today you would earn a total of  138.00  from holding GoodRx Holdings or generate 21.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Healthequity  vs.  GoodRx Holdings Inc

 Performance (%) 
       Timeline  
Healthequity 
Healthequity Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Healthequity are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Healthequity showed solid returns over the last few months and may actually be approaching a breakup point.

Healthequity Price Channel

GoodRx Holdings 
GoodRx Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in GoodRx Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, GoodRx Holdings may actually be approaching a critical reversion point that can send shares even higher in September 2022.

GoodRx Price Channel

Healthequity and GoodRx Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Healthequity and GoodRx Holdings

The main advantage of trading using opposite Healthequity and GoodRx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthequity 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.
The idea behind Healthequity and GoodRx Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go