Correlation Between Bionano Genomics and GlucoTrack
Can any of the company-specific risk be diversified away by investing in both Bionano Genomics and GlucoTrack 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 GlucoTrack into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bionano Genomics and GlucoTrack, you can compare the effects of market volatilities on Bionano Genomics and GlucoTrack 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 GlucoTrack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionano Genomics and GlucoTrack.
Diversification Opportunities for Bionano Genomics and GlucoTrack
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bionano and GlucoTrack is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bionano Genomics and GlucoTrack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlucoTrack 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 GlucoTrack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlucoTrack has no effect on the direction of Bionano Genomics i.e., Bionano Genomics and GlucoTrack go up and down completely randomly.
Pair Corralation between Bionano Genomics and GlucoTrack
Given the investment horizon of 90 days Bionano Genomics is expected to generate 0.37 times more return on investment than GlucoTrack. However, Bionano Genomics is 2.69 times less risky than GlucoTrack. It trades about -0.25 of its potential returns per unit of risk. GlucoTrack is currently generating about -0.22 per unit of risk. If you would invest 42.00 in Bionano Genomics on August 25, 2024 and sell it today you would lose (20.00) from holding Bionano Genomics or give up 47.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bionano Genomics vs. GlucoTrack
Performance |
| Timeline |
| Bionano Genomics |
| GlucoTrack |
Bionano Genomics and GlucoTrack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bionano Genomics and GlucoTrack
The main advantage of trading using opposite Bionano Genomics and GlucoTrack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionano Genomics position performs unexpectedly, GlucoTrack 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 GlucoTrack will offset losses from the drop in GlucoTrack's long position.| Bionano Genomics vs. Fonar | Bionano Genomics vs. Burning Rock Biotech | Bionano Genomics vs. Sera Prognostics | Bionano Genomics vs. Exagen Inc |
| GlucoTrack vs. Heartbeam | GlucoTrack vs. EUDA Health Holdings | GlucoTrack vs. Nutex Health | GlucoTrack vs. Healthcare Triangle |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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