Correlation Between 10X GENOMICS and OAKRIDGE INTERNATIONAL
Can any of the company-specific risk be diversified away by investing in both 10X GENOMICS and OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL, you can compare the effects of market volatilities on 10X GENOMICS and OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X GENOMICS and OAKRIDGE INTERNATIONAL.
Diversification Opportunities for 10X GENOMICS and OAKRIDGE INTERNATIONAL
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 10X and OAKRIDGE is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding 10X GENOMICS DL and OAKRIDGE INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKRIDGE INTERNATIONAL has no effect on the direction of 10X GENOMICS i.e., 10X GENOMICS and OAKRIDGE INTERNATIONAL go up and down completely randomly.
Pair Corralation between 10X GENOMICS and OAKRIDGE INTERNATIONAL
Assuming the 90 days horizon 10X GENOMICS DL is expected to under-perform the OAKRIDGE INTERNATIONAL. But the stock apears to be less risky and, when comparing its historical volatility, 10X GENOMICS DL is 3.14 times less risky than OAKRIDGE INTERNATIONAL. The stock trades about -0.02 of its potential returns per unit of risk. The OAKRIDGE INTERNATIONAL is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6.10 in OAKRIDGE INTERNATIONAL on September 5, 2024 and sell it today you would lose (2.95) from holding OAKRIDGE INTERNATIONAL or give up 48.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
10X GENOMICS DL vs. OAKRIDGE INTERNATIONAL
Performance |
| Timeline |
| 10X GENOMICS DL |
| OAKRIDGE INTERNATIONAL |
10X GENOMICS and OAKRIDGE INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 10X GENOMICS and OAKRIDGE INTERNATIONAL
The main advantage of trading using opposite 10X GENOMICS and OAKRIDGE INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X GENOMICS position performs unexpectedly, OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL will offset losses from the drop in OAKRIDGE INTERNATIONAL's long position.| 10X GENOMICS vs. Grand Canyon Education | 10X GENOMICS vs. CHINA EDUCATION GROUP | 10X GENOMICS vs. SLR Investment Corp | 10X GENOMICS vs. Apollo Investment Corp |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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