Correlation Between NIGHTINGALE HEALTH and 10X GENOMICS
Can any of the company-specific risk be diversified away by investing in both NIGHTINGALE HEALTH and 10X GENOMICS 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 NIGHTINGALE HEALTH and 10X GENOMICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIGHTINGALE HEALTH EO and 10X GENOMICS DL, you can compare the effects of market volatilities on NIGHTINGALE HEALTH and 10X GENOMICS 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 NIGHTINGALE HEALTH with a short position of 10X GENOMICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIGHTINGALE HEALTH and 10X GENOMICS.
Diversification Opportunities for NIGHTINGALE HEALTH and 10X GENOMICS
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NIGHTINGALE and 10X is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding NIGHTINGALE HEALTH EO and 10X GENOMICS DL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X GENOMICS DL and NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH EO are associated (or correlated) with 10X GENOMICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X GENOMICS DL has no effect on the direction of NIGHTINGALE HEALTH i.e., NIGHTINGALE HEALTH and 10X GENOMICS go up and down completely randomly.
Pair Corralation between NIGHTINGALE HEALTH and 10X GENOMICS
Assuming the 90 days horizon NIGHTINGALE HEALTH is expected to generate 6.72 times less return on investment than 10X GENOMICS. But when comparing it to its historical volatility, NIGHTINGALE HEALTH EO is 1.92 times less risky than 10X GENOMICS. It trades about 0.06 of its potential returns per unit of risk. 10X GENOMICS DL is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,261 in 10X GENOMICS DL on October 21, 2024 and sell it today you would earn a total of 190.00 from holding 10X GENOMICS DL or generate 15.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIGHTINGALE HEALTH EO vs. 10X GENOMICS DL
Performance |
| Timeline |
| NIGHTINGALE HEALTH |
| 10X GENOMICS DL |
NIGHTINGALE HEALTH and 10X GENOMICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIGHTINGALE HEALTH and 10X GENOMICS
The main advantage of trading using opposite NIGHTINGALE HEALTH and 10X GENOMICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIGHTINGALE HEALTH position performs unexpectedly, 10X GENOMICS 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 10X GENOMICS will offset losses from the drop in 10X GENOMICS's long position.| NIGHTINGALE HEALTH vs. 10X GENOMICS DL | NIGHTINGALE HEALTH vs. Healthequity | NIGHTINGALE HEALTH vs. Teladoc | NIGHTINGALE HEALTH vs. Evolent Health |
| 10X GENOMICS vs. Healthequity | 10X GENOMICS vs. Teladoc | 10X GENOMICS vs. Evolent Health | 10X GENOMICS vs. RLX TECH SPADR1 |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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