Correlation Between Evolent Health and 10X GENOMICS
Can any of the company-specific risk be diversified away by investing in both Evolent 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 Evolent 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 Evolent Health and 10X GENOMICS DL, you can compare the effects of market volatilities on Evolent 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 Evolent Health with a short position of 10X GENOMICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and 10X GENOMICS.
Diversification Opportunities for Evolent Health and 10X GENOMICS
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Evolent and 10X is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health 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 Evolent 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 Evolent Health 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 Evolent Health i.e., Evolent Health and 10X GENOMICS go up and down completely randomly.
Pair Corralation between Evolent Health and 10X GENOMICS
Assuming the 90 days horizon Evolent Health is expected to generate 0.86 times more return on investment than 10X GENOMICS. However, Evolent Health is 1.17 times less risky than 10X GENOMICS. It trades about -0.04 of its potential returns per unit of risk. 10X GENOMICS DL is currently generating about -0.06 per unit of risk. If you would invest 2,920 in Evolent Health on November 27, 2024 and sell it today you would lose (1,930) from holding Evolent Health or give up 66.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. 10X GENOMICS DL
Performance |
| Timeline |
| Evolent Health |
| 10X GENOMICS DL |
Evolent Health and 10X GENOMICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and 10X GENOMICS
The main advantage of trading using opposite Evolent Health and 10X GENOMICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent 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.| Evolent Health vs. ATRESMEDIA | Evolent Health vs. Allegheny Technologies Incorporated | Evolent Health vs. Live Nation Entertainment | Evolent Health vs. LINMON MEDIA LTD |
| 10X GENOMICS vs. Virtu Financial | 10X GENOMICS vs. REVO INSURANCE SPA | 10X GENOMICS vs. Silicon Motion Technology | 10X GENOMICS vs. TRI CHEMICAL LABORATINC |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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