Correlation Between Goodrx Holdings and Semler Scientific

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

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

Diversification Opportunities for Goodrx Holdings and Semler Scientific

-0.1

Correlation Coefficient

Goodrx Holdings  Semler Scientific

Good diversification

The 3 months correlation between Goodrx and Semler is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Goodrx Holdings and Semler Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semler Scientific and Goodrx Holdings 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 Goodrx Holdings are associated (or correlated) with Semler Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semler Scientific has no effect on the direction of Goodrx Holdings i.e., Goodrx Holdings and Semler Scientific go up and down completely randomly.

Pair Corralation between Goodrx Holdings and Semler Scientific

Given the investment horizon of 90 days Goodrx Holdings is expected to generate 0.53 times more return on investment than Semler Scientific. However, Goodrx Holdings is 1.87 times less risky than Semler Scientific. It trades about 0.06 of its potential returns per unit of risk. Semler Scientific is currently generating about -0.11 per unit of risk. If you would invest  452.00  in Goodrx Holdings on December 21, 2024 and sell it today you would earn a total of  37.00  from holding Goodrx Holdings or generate 8.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Goodrx Holdings  vs.  Semler Scientific

Goodrx Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Goodrx Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Goodrx Holdings may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Semler Scientific

Risk-Adjusted Performance

Very Weak

Over the last 90 days Semler Scientific has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Goodrx Holdings and Semler Scientific

The main advantage of trading using opposite Goodrx Holdings and Semler Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodrx Holdings position performs unexpectedly, Semler Scientific 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 Semler Scientific will offset losses from the drop in Semler Scientific's long position.

The idea behind Goodrx Holdings and Semler Scientific 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.