Correlation Between LabGenomics and Sugentech
Can any of the company-specific risk be diversified away by investing in both LabGenomics and Sugentech 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 LabGenomics and Sugentech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LabGenomics Co and Sugentech, you can compare the effects of market volatilities on LabGenomics and Sugentech 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 LabGenomics with a short position of Sugentech. Check out your portfolio center. Please also check ongoing floating volatility patterns of LabGenomics and Sugentech.
Diversification Opportunities for LabGenomics and Sugentech
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LabGenomics and Sugentech is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding LabGenomics Co and Sugentech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sugentech and LabGenomics 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 LabGenomics Co are associated (or correlated) with Sugentech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sugentech has no effect on the direction of LabGenomics i.e., LabGenomics and Sugentech go up and down completely randomly.
Pair Corralation between LabGenomics and Sugentech
Assuming the 90 days trading horizon LabGenomics Co is expected to under-perform the Sugentech. In addition to that, LabGenomics is 1.05 times more volatile than Sugentech. It trades about -0.48 of its total potential returns per unit of risk. Sugentech is currently generating about -0.22 per unit of volatility. If you would invest 626,000 in Sugentech on September 3, 2024 and sell it today you would lose (74,000) from holding Sugentech or give up 11.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LabGenomics Co vs. Sugentech
Performance |
| Timeline |
| LabGenomics |
| Sugentech |
LabGenomics and Sugentech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LabGenomics and Sugentech
The main advantage of trading using opposite LabGenomics and Sugentech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LabGenomics position performs unexpectedly, Sugentech 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 Sugentech will offset losses from the drop in Sugentech's long position.| LabGenomics vs. SH Energy Chemical | LabGenomics vs. Miwon Chemical | LabGenomics vs. Barunson Entertainment Arts | LabGenomics vs. Posco Chemical Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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