Correlation Between Bionano Genomics and Sharps Technology
Can any of the company-specific risk be diversified away by investing in both Bionano Genomics and Sharps Technology 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 Sharps Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bionano Genomics and Sharps Technology, you can compare the effects of market volatilities on Bionano Genomics and Sharps Technology 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 Sharps Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionano Genomics and Sharps Technology.
Diversification Opportunities for Bionano Genomics and Sharps Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bionano and Sharps is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bionano Genomics and Sharps Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharps Technology 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 Sharps Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharps Technology has no effect on the direction of Bionano Genomics i.e., Bionano Genomics and Sharps Technology go up and down completely randomly.
Pair Corralation between Bionano Genomics and Sharps Technology
Given the investment horizon of 90 days Bionano Genomics is expected to under-perform the Sharps Technology. But the stock apears to be less risky and, when comparing its historical volatility, Bionano Genomics is 1.32 times less risky than Sharps Technology. The stock trades about -0.25 of its potential returns per unit of risk. The Sharps Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 376.00 in Sharps Technology on August 25, 2024 and sell it today you would lose (23.00) from holding Sharps Technology or give up 6.12% 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. Sharps Technology
Performance |
| Timeline |
| Bionano Genomics |
| Sharps Technology |
Bionano Genomics and Sharps Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bionano Genomics and Sharps Technology
The main advantage of trading using opposite Bionano Genomics and Sharps Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionano Genomics position performs unexpectedly, Sharps Technology 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 Sharps Technology will offset losses from the drop in Sharps Technology's long position.| Bionano Genomics vs. Fonar | Bionano Genomics vs. Burning Rock Biotech | Bionano Genomics vs. Sera Prognostics | Bionano Genomics vs. Exagen Inc |
| Sharps Technology vs. JIN MEDICAL INTERNATIONAL | Sharps Technology vs. Meihua International Medical | Sharps Technology vs. GlucoTrack | Sharps Technology vs. Innovative Eyewear |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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