Correlation Between 10X GENOMICS and DAIRY FARM
Can any of the company-specific risk be diversified away by investing in both 10X GENOMICS and DAIRY FARM 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 DAIRY FARM 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 DAIRY FARM INTL, you can compare the effects of market volatilities on 10X GENOMICS and DAIRY FARM 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 DAIRY FARM. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X GENOMICS and DAIRY FARM.
Diversification Opportunities for 10X GENOMICS and DAIRY FARM
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 10X and DAIRY is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding 10X GENOMICS DL and DAIRY FARM INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAIRY FARM INTL 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 DAIRY FARM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAIRY FARM INTL has no effect on the direction of 10X GENOMICS i.e., 10X GENOMICS and DAIRY FARM go up and down completely randomly.
Pair Corralation between 10X GENOMICS and DAIRY FARM
Assuming the 90 days horizon 10X GENOMICS DL is expected to generate 2.79 times more return on investment than DAIRY FARM. However, 10X GENOMICS is 2.79 times more volatile than DAIRY FARM INTL. It trades about 0.01 of its potential returns per unit of risk. DAIRY FARM INTL is currently generating about -0.01 per unit of risk. If you would invest 1,506 in 10X GENOMICS DL on September 13, 2024 and sell it today you would lose (28.00) from holding 10X GENOMICS DL or give up 1.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
10X GENOMICS DL vs. DAIRY FARM INTL
Performance |
| Timeline |
| 10X GENOMICS DL |
| DAIRY FARM INTL |
10X GENOMICS and DAIRY FARM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 10X GENOMICS and DAIRY FARM
The main advantage of trading using opposite 10X GENOMICS and DAIRY FARM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X GENOMICS position performs unexpectedly, DAIRY FARM 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 DAIRY FARM will offset losses from the drop in DAIRY FARM's long position.| 10X GENOMICS vs. BII Railway Transportation | 10X GENOMICS vs. TITANIUM TRANSPORTGROUP | 10X GENOMICS vs. Transport International Holdings | 10X GENOMICS vs. CarsalesCom |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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