Correlation Between Apple and NanoString Technologies
Can any of the company-specific risk be diversified away by investing in both Apple and NanoString Technologies 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 Apple and NanoString Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and NanoString Technologies, you can compare the effects of market volatilities on Apple and NanoString Technologies 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 Apple with a short position of NanoString Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and NanoString Technologies.
Diversification Opportunities for Apple and NanoString Technologies
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and NanoString is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and NanoString Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NanoString Technologies and Apple 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 Apple Inc are associated (or correlated) with NanoString Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NanoString Technologies has no effect on the direction of Apple i.e., Apple and NanoString Technologies go up and down completely randomly.
Pair Corralation between Apple and NanoString Technologies
If you would invest 411.00 in NanoString Technologies on October 23, 2024 and sell it today you would earn a total of 0.00 from holding NanoString Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Apple Inc vs. NanoString Technologies
Performance |
| Timeline |
| Apple Inc |
| NanoString Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apple and NanoString Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and NanoString Technologies
The main advantage of trading using opposite Apple and NanoString Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, NanoString Technologies 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 NanoString Technologies will offset losses from the drop in NanoString Technologies' long position.The idea behind Apple Inc and NanoString Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| NanoString Technologies vs. Veracyte | NanoString Technologies vs. Syros Pharmaceuticals | NanoString Technologies vs. Seres Therapeutics | NanoString Technologies vs. Iovance Biotherapeutics |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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