Correlation Between Applied DNA and Genetron Holdings
Can any of the company-specific risk be diversified away by investing in both Applied DNA and Genetron Holdings 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 Applied DNA and Genetron Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied DNA Sciences and Genetron Holdings, you can compare the effects of market volatilities on Applied DNA and Genetron Holdings 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 Applied DNA with a short position of Genetron Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied DNA and Genetron Holdings.
Diversification Opportunities for Applied DNA and Genetron Holdings
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Applied and Genetron is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Applied DNA Sciences and Genetron Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genetron Holdings and Applied DNA 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 Applied DNA Sciences are associated (or correlated) with Genetron Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genetron Holdings has no effect on the direction of Applied DNA i.e., Applied DNA and Genetron Holdings go up and down completely randomly.
Pair Corralation between Applied DNA and Genetron Holdings
Given the investment horizon of 90 days Applied DNA Sciences is expected to under-perform the Genetron Holdings. In addition to that, Applied DNA is 5.88 times more volatile than Genetron Holdings. It trades about -0.06 of its total potential returns per unit of risk. Genetron Holdings is currently generating about 0.08 per unit of volatility. If you would invest 90.00 in Genetron Holdings on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Genetron Holdings or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 8.56% |
| Values | Daily Returns |
Applied DNA Sciences vs. Genetron Holdings
Performance |
| Timeline |
| Applied DNA Sciences |
| Genetron Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Applied DNA and Genetron Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied DNA and Genetron Holdings
The main advantage of trading using opposite Applied DNA and Genetron Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied DNA position performs unexpectedly, Genetron Holdings 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 Genetron Holdings will offset losses from the drop in Genetron Holdings' long position.| Applied DNA vs. Biodesix | Applied DNA vs. DarioHealth Corp | Applied DNA vs. Exagen Inc | Applied DNA vs. Burning Rock Biotech |
| Genetron Holdings vs. Psychemedics | Genetron Holdings vs. Sera Prognostics | Genetron Holdings vs. DarioHealth Corp | Genetron Holdings vs. Biodesix |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |