Correlation Between 10X GENOMICS and Ping An
Can any of the company-specific risk be diversified away by investing in both 10X GENOMICS and Ping An 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 10X GENOMICS and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 10X GENOMICS DL and Ping An Healthcare, you can compare the effects of market volatilities on 10X GENOMICS and Ping An 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 10X GENOMICS with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X GENOMICS and Ping An.
Diversification Opportunities for 10X GENOMICS and Ping An
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 10X and Ping is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding 10X GENOMICS DL and Ping An Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Healthcare and 10X GENOMICS 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 10X GENOMICS DL are associated (or correlated) with Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Healthcare has no effect on the direction of 10X GENOMICS i.e., 10X GENOMICS and Ping An go up and down completely randomly.
Pair Corralation between 10X GENOMICS and Ping An
Assuming the 90 days horizon 10X GENOMICS is expected to generate 21.61 times less return on investment than Ping An. In addition to that, 10X GENOMICS is 1.15 times more volatile than Ping An Healthcare. It trades about 0.01 of its total potential returns per unit of risk. Ping An Healthcare is currently generating about 0.26 per unit of volatility. If you would invest 136.00 in Ping An Healthcare on September 3, 2024 and sell it today you would earn a total of 39.00 from holding Ping An Healthcare or generate 28.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
10X GENOMICS DL vs. Ping An Healthcare
Performance |
| Timeline |
| 10X GENOMICS DL |
| Ping An Healthcare |
10X GENOMICS and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 10X GENOMICS and Ping An
The main advantage of trading using opposite 10X GENOMICS and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X GENOMICS position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| 10X GENOMICS vs. DATANG INTL POW | 10X GENOMICS vs. MICRONIC MYDATA | 10X GENOMICS vs. Ares Management Corp | 10X GENOMICS vs. Public Storage |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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