Correlation Between DATANG INTL and 10X GENOMICS
Can any of the company-specific risk be diversified away by investing in both DATANG INTL and 10X GENOMICS 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 DATANG INTL and 10X GENOMICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATANG INTL POW and 10X GENOMICS DL, you can compare the effects of market volatilities on DATANG INTL and 10X GENOMICS 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 DATANG INTL with a short position of 10X GENOMICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATANG INTL and 10X GENOMICS.
Diversification Opportunities for DATANG INTL and 10X GENOMICS
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DATANG and 10X is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding DATANG INTL POW and 10X GENOMICS DL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X GENOMICS DL and DATANG INTL 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 DATANG INTL POW are associated (or correlated) with 10X GENOMICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X GENOMICS DL has no effect on the direction of DATANG INTL i.e., DATANG INTL and 10X GENOMICS go up and down completely randomly.
Pair Corralation between DATANG INTL and 10X GENOMICS
Assuming the 90 days trading horizon DATANG INTL POW is expected to generate 0.65 times more return on investment than 10X GENOMICS. However, DATANG INTL POW is 1.54 times less risky than 10X GENOMICS. It trades about -0.01 of its potential returns per unit of risk. 10X GENOMICS DL is currently generating about -0.02 per unit of risk. If you would invest 18.00 in DATANG INTL POW on September 3, 2024 and sell it today you would lose (2.00) from holding DATANG INTL POW or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DATANG INTL POW vs. 10X GENOMICS DL
Performance |
| Timeline |
| DATANG INTL POW |
| 10X GENOMICS DL |
DATANG INTL and 10X GENOMICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATANG INTL and 10X GENOMICS
The main advantage of trading using opposite DATANG INTL and 10X GENOMICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATANG INTL position performs unexpectedly, 10X GENOMICS 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 10X GENOMICS will offset losses from the drop in 10X GENOMICS's long position.| DATANG INTL vs. TOTAL GABON | DATANG INTL vs. Walgreens Boots Alliance | DATANG INTL vs. Peak Resources Limited |
| 10X GENOMICS vs. DATANG INTL POW | 10X GENOMICS vs. MICRONIC MYDATA | 10X GENOMICS vs. Ares Management Corp | 10X GENOMICS vs. Public Storage |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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