Correlation Between Applied DNA and Revvity
Can any of the company-specific risk be diversified away by investing in both Applied DNA and Revvity 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 Revvity 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 Revvity, you can compare the effects of market volatilities on Applied DNA and Revvity 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 Revvity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied DNA and Revvity.
Diversification Opportunities for Applied DNA and Revvity
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Applied and Revvity is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Applied DNA Sciences and Revvity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revvity 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 Revvity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revvity has no effect on the direction of Applied DNA i.e., Applied DNA and Revvity go up and down completely randomly.
Pair Corralation between Applied DNA and Revvity
Given the investment horizon of 90 days Applied DNA Sciences is expected to under-perform the Revvity. In addition to that, Applied DNA is 5.64 times more volatile than Revvity. It trades about -0.05 of its total potential returns per unit of risk. Revvity is currently generating about -0.01 per unit of volatility. If you would invest 14,301 in Revvity on September 4, 2024 and sell it today you would lose (2,631) from holding Revvity or give up 18.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied DNA Sciences vs. Revvity
Performance |
| Timeline |
| Applied DNA Sciences |
| Revvity |
Applied DNA and Revvity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied DNA and Revvity
The main advantage of trading using opposite Applied DNA and Revvity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied DNA position performs unexpectedly, Revvity 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 Revvity will offset losses from the drop in Revvity's long position.| Applied DNA vs. Biodesix | Applied DNA vs. DarioHealth Corp | Applied DNA vs. Exagen Inc | Applied DNA vs. Burning Rock Biotech |
| Revvity vs. Waters | Revvity vs. IDEXX Laboratories | Revvity vs. IQVIA Holdings | Revvity vs. Charles River Laboratories |
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 CEOs Directory module to screen CEOs from public companies around the world.
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