Correlation Between Bionano Genomics and Jaguar Animal
Can any of the company-specific risk be diversified away by investing in both Bionano Genomics and Jaguar Animal 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 Jaguar Animal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bionano Genomics and Jaguar Animal Health, you can compare the effects of market volatilities on Bionano Genomics and Jaguar Animal 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 Jaguar Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionano Genomics and Jaguar Animal.
Diversification Opportunities for Bionano Genomics and Jaguar Animal
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bionano and Jaguar is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bionano Genomics and Jaguar Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Animal Health 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 Jaguar Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Animal Health has no effect on the direction of Bionano Genomics i.e., Bionano Genomics and Jaguar Animal go up and down completely randomly.
Pair Corralation between Bionano Genomics and Jaguar Animal
Given the investment horizon of 90 days Bionano Genomics is expected to under-perform the Jaguar Animal. In addition to that, Bionano Genomics is 1.16 times more volatile than Jaguar Animal Health. It trades about -0.14 of its total potential returns per unit of risk. Jaguar Animal Health is currently generating about 0.0 per unit of volatility. If you would invest 112.00 in Jaguar Animal Health on September 2, 2024 and sell it today you would lose (8.00) from holding Jaguar Animal Health or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bionano Genomics vs. Jaguar Animal Health
Performance |
| Timeline |
| Bionano Genomics |
| Jaguar Animal Health |
Bionano Genomics and Jaguar Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bionano Genomics and Jaguar Animal
The main advantage of trading using opposite Bionano Genomics and Jaguar Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionano Genomics position performs unexpectedly, Jaguar Animal 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 Jaguar Animal will offset losses from the drop in Jaguar Animal's long position.| Bionano Genomics vs. Intuitive Surgical | Bionano Genomics vs. Innovative Eyewear | Bionano Genomics vs. Stereotaxis | Bionano Genomics vs. Nexgel Inc |
| Jaguar Animal vs. Ibio Inc | Jaguar Animal vs. GeoVax Labs | Jaguar Animal vs. Ocugen Inc | Jaguar Animal vs. Zura Bio Limited |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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