Correlation Between Applied DNA and Precipio
Can any of the company-specific risk be diversified away by investing in both Applied DNA and Precipio 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 Precipio 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 Precipio, you can compare the effects of market volatilities on Applied DNA and Precipio 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 Precipio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied DNA and Precipio.
Diversification Opportunities for Applied DNA and Precipio
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Applied and Precipio is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Applied DNA Sciences and Precipio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precipio 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 Precipio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precipio has no effect on the direction of Applied DNA i.e., Applied DNA and Precipio go up and down completely randomly.
Pair Corralation between Applied DNA and Precipio
Given the investment horizon of 90 days Applied DNA Sciences is expected to under-perform the Precipio. In addition to that, Applied DNA is 2.22 times more volatile than Precipio. It trades about -0.23 of its total potential returns per unit of risk. Precipio is currently generating about 0.43 per unit of volatility. If you would invest 536.00 in Precipio on November 3, 2024 and sell it today you would earn a total of 151.00 from holding Precipio or generate 28.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Applied DNA Sciences vs. Precipio
Performance |
| Timeline |
| Applied DNA Sciences |
| Precipio |
Applied DNA and Precipio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied DNA and Precipio
The main advantage of trading using opposite Applied DNA and Precipio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied DNA position performs unexpectedly, Precipio 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 Precipio will offset losses from the drop in Precipio's long position.| Applied DNA vs. Biodesix | Applied DNA vs. DarioHealth Corp | Applied DNA vs. Exagen Inc | Applied DNA vs. Burning Rock Biotech |
| Precipio vs. Biodesix | Precipio vs. Sera Prognostics | Precipio vs. Applied DNA Sciences | Precipio vs. Caredx Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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