Correlation Between Bionano Genomics and Senseonics Holdings
Can any of the company-specific risk be diversified away by investing in both Bionano Genomics and Senseonics Holdings 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 Senseonics Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bionano Genomics and Senseonics Holdings, you can compare the effects of market volatilities on Bionano Genomics and Senseonics Holdings 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 Senseonics Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionano Genomics and Senseonics Holdings.
Diversification Opportunities for Bionano Genomics and Senseonics Holdings
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bionano and Senseonics is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bionano Genomics and Senseonics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senseonics Holdings 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 Senseonics Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senseonics Holdings has no effect on the direction of Bionano Genomics i.e., Bionano Genomics and Senseonics Holdings go up and down completely randomly.
Pair Corralation between Bionano Genomics and Senseonics Holdings
Given the investment horizon of 90 days Bionano Genomics is expected to under-perform the Senseonics Holdings. In addition to that, Bionano Genomics is 1.14 times more volatile than Senseonics Holdings. It trades about -0.14 of its total potential returns per unit of risk. Senseonics Holdings is currently generating about -0.04 per unit of volatility. If you would invest 37.00 in Senseonics Holdings on September 2, 2024 and sell it today you would lose (6.00) from holding Senseonics Holdings or give up 16.22% 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. Senseonics Holdings
Performance |
| Timeline |
| Bionano Genomics |
| Senseonics Holdings |
Bionano Genomics and Senseonics Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bionano Genomics and Senseonics Holdings
The main advantage of trading using opposite Bionano Genomics and Senseonics Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionano Genomics position performs unexpectedly, Senseonics Holdings 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 Senseonics Holdings will offset losses from the drop in Senseonics Holdings' long position.| Bionano Genomics vs. Intuitive Surgical | Bionano Genomics vs. Innovative Eyewear | Bionano Genomics vs. Stereotaxis | Bionano Genomics vs. Nexgel Inc |
| Senseonics Holdings vs. Insulet | Senseonics Holdings vs. Tandem Diabetes Care | Senseonics Holdings vs. Abbott Laboratories | Senseonics Holdings vs. Align 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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