Correlation Between 10X GENOMICS and Grand Canyon
Can any of the company-specific risk be diversified away by investing in both 10X GENOMICS and Grand Canyon 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 Grand Canyon 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 Grand Canyon Education, you can compare the effects of market volatilities on 10X GENOMICS and Grand Canyon 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 Grand Canyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X GENOMICS and Grand Canyon.
Diversification Opportunities for 10X GENOMICS and Grand Canyon
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 10X and Grand is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding 10X GENOMICS DL and Grand Canyon Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canyon Education 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 Grand Canyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canyon Education has no effect on the direction of 10X GENOMICS i.e., 10X GENOMICS and Grand Canyon go up and down completely randomly.
Pair Corralation between 10X GENOMICS and Grand Canyon
Assuming the 90 days horizon 10X GENOMICS DL is expected to generate 3.25 times more return on investment than Grand Canyon. However, 10X GENOMICS is 3.25 times more volatile than Grand Canyon Education. It trades about 0.01 of its potential returns per unit of risk. Grand Canyon Education is currently generating about 0.03 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 (27.00) from holding 10X GENOMICS DL or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
10X GENOMICS DL vs. Grand Canyon Education
Performance |
| Timeline |
| 10X GENOMICS DL |
| Grand Canyon Education |
10X GENOMICS and Grand Canyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 10X GENOMICS and Grand Canyon
The main advantage of trading using opposite 10X GENOMICS and Grand Canyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X GENOMICS position performs unexpectedly, Grand Canyon 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 Grand Canyon will offset losses from the drop in Grand Canyon's long position.| 10X GENOMICS vs. DAIRY FARM INTL | 10X GENOMICS vs. Canon Marketing Japan | 10X GENOMICS vs. Federal Agricultural Mortgage | 10X GENOMICS vs. AUTO TRADER ADR |
| Grand Canyon vs. Apple Inc | Grand Canyon vs. Apple Inc | Grand Canyon vs. Apple Inc | Grand Canyon vs. Apple Inc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |