Correlation Between Axonics Modulation and Progyny

Can any of the company-specific risk be diversified away by investing in both Axonics Modulation 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 Axonics Modulation and Progyny into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Axonics Modulation Technologies and Progyny, you can compare the effects of market volatilities on Axonics Modulation 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 Axonics Modulation with a short position of Progyny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axonics Modulation and Progyny.

Diversification Opportunities for Axonics Modulation and Progyny

-0.62

Correlation Coefficient

Axonics Modulation  Progyny

Excellent diversification

The 3 months correlation between Axonics and Progyny is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Axonics Modulation Technologie and Progyny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progyny and Axonics Modulation 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 Axonics Modulation Technologies 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 Axonics Modulation i.e., Axonics Modulation and Progyny go up and down completely randomly.

Pair Corralation between Axonics Modulation and Progyny

Given the investment horizon of 90 days Axonics Modulation Technologies is expected to generate 0.05 times more return on investment than Progyny. However, Axonics Modulation Technologies is 21.09 times less risky than Progyny. It trades about 0.2 of its potential returns per unit of risk. Progyny is currently generating about -0.09 per unit of risk. If you would invest  6,916  in Axonics Modulation Technologies on September 2, 2024 and sell it today you would earn a total of  182.00  from holding Axonics Modulation Technologies or generate 2.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	84.38%
Values	Daily Returns

Axonics Modulation Technologie  vs.  Progyny

Axonics Modulation

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Axonics Modulation Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Axonics Modulation is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Progyny

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Progyny has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Axonics Modulation and Progyny

The main advantage of trading using opposite Axonics Modulation and Progyny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axonics Modulation 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.

The idea behind Axonics Modulation Technologies and Progyny 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.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.