Correlation Between Accelerate Diagnostics and Manhattan Scients
Can any of the company-specific risk be diversified away by investing in both Accelerate Diagnostics and Manhattan Scients 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 Accelerate Diagnostics and Manhattan Scients into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accelerate Diagnostics and Manhattan Scients, you can compare the effects of market volatilities on Accelerate Diagnostics and Manhattan Scients 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 Accelerate Diagnostics with a short position of Manhattan Scients. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelerate Diagnostics and Manhattan Scients.
Diversification Opportunities for Accelerate Diagnostics and Manhattan Scients
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Accelerate and Manhattan is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate Diagnostics and Manhattan Scients in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Scients and Accelerate Diagnostics 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 Accelerate Diagnostics are associated (or correlated) with Manhattan Scients. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Scients has no effect on the direction of Accelerate Diagnostics i.e., Accelerate Diagnostics and Manhattan Scients go up and down completely randomly.
Pair Corralation between Accelerate Diagnostics and Manhattan Scients
Given the investment horizon of 90 days Accelerate Diagnostics is expected to generate 0.37 times more return on investment than Manhattan Scients. However, Accelerate Diagnostics is 2.71 times less risky than Manhattan Scients. It trades about 0.04 of its potential returns per unit of risk. Manhattan Scients is currently generating about 0.01 per unit of risk. If you would invest 147.00 in Accelerate Diagnostics on August 25, 2024 and sell it today you would earn a total of 17.00 from holding Accelerate Diagnostics or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accelerate Diagnostics vs. Manhattan Scients
Performance |
| Timeline |
| Accelerate Diagnostics |
| Manhattan Scients |
Accelerate Diagnostics and Manhattan Scients Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accelerate Diagnostics and Manhattan Scients
The main advantage of trading using opposite Accelerate Diagnostics and Manhattan Scients positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelerate Diagnostics position performs unexpectedly, Manhattan Scients 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 Manhattan Scients will offset losses from the drop in Manhattan Scients' long position.| Accelerate Diagnostics vs. CVRx Inc | Accelerate Diagnostics vs. Neuropace | Accelerate Diagnostics vs. Anika Therapeutics | Accelerate Diagnostics vs. Axogen Inc |
| Manhattan Scients vs. VentriPoint Diagnostics | Manhattan Scients vs. Cannabix Technologies | Manhattan Scients vs. Accelerate Diagnostics | Manhattan Scients vs. Venus Concept |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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