Correlation Between Clear Secure and Doximity

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

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

Diversification Opportunities for Clear Secure and Doximity

-0.69

Correlation Coefficient

Clear Secure  Doximity

Excellent diversification

The 3 months correlation between Clear and Doximity is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Clear Secure and Doximity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doximity and Clear Secure 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 Clear Secure are associated (or correlated) with Doximity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doximity has no effect on the direction of Clear Secure i.e., Clear Secure and Doximity go up and down completely randomly.

Pair Corralation between Clear Secure and Doximity

Considering the 90-day investment horizon Clear Secure is expected to generate 0.62 times more return on investment than Doximity. However, Clear Secure is 1.62 times less risky than Doximity. It trades about 0.04 of its potential returns per unit of risk. Doximity is currently generating about -0.1 per unit of risk. If you would invest  2,740  in Clear Secure on September 13, 2024 and sell it today you would earn a total of  39.00  from holding Clear Secure or generate 1.42% return on investment over 90 days.

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

Clear Secure  vs.  Doximity

Clear Secure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Clear Secure has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Clear Secure is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Doximity

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Doximity are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady fundamental indicators, Doximity unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Clear Secure and Doximity

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

The idea behind Clear Secure and Doximity 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.