Correlation Between Bionano Genomics and CeCors
Can any of the company-specific risk be diversified away by investing in both Bionano Genomics and CeCors 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 Bionano Genomics and CeCors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bionano Genomics and CeCors Inc, you can compare the effects of market volatilities on Bionano Genomics and CeCors 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 Bionano Genomics with a short position of CeCors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionano Genomics and CeCors.
Diversification Opportunities for Bionano Genomics and CeCors
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bionano and CeCors is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bionano Genomics and CeCors Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CeCors Inc and Bionano Genomics 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 Bionano Genomics are associated (or correlated) with CeCors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CeCors Inc has no effect on the direction of Bionano Genomics i.e., Bionano Genomics and CeCors go up and down completely randomly.
Pair Corralation between Bionano Genomics and CeCors
Given the investment horizon of 90 days Bionano Genomics is expected to under-perform the CeCors. But the stock apears to be less risky and, when comparing its historical volatility, Bionano Genomics is 1.95 times less risky than CeCors. The stock trades about -0.15 of its potential returns per unit of risk. The CeCors Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7.30 in CeCors Inc on November 2, 2024 and sell it today you would lose (5.38) from holding CeCors Inc or give up 73.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bionano Genomics vs. CeCors Inc
Performance |
| Timeline |
| Bionano Genomics |
| CeCors Inc |
Bionano Genomics and CeCors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bionano Genomics and CeCors
The main advantage of trading using opposite Bionano Genomics and CeCors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionano Genomics position performs unexpectedly, CeCors 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 CeCors will offset losses from the drop in CeCors' long position.| Bionano Genomics vs. Intuitive Surgical | Bionano Genomics vs. Innovative Eyewear | Bionano Genomics vs. Stereotaxis | Bionano Genomics vs. Nexgel Inc |
| CeCors vs. BioLife Sciences | CeCors vs. Innerscope Advertising Agency | CeCors vs. GlucoTrack | CeCors vs. Sharps Technology |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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