Correlation Between Castle Biosciences and Qiagen NV
Can any of the company-specific risk be diversified away by investing in both Castle Biosciences and Qiagen NV 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 Castle Biosciences and Qiagen NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castle Biosciences and Qiagen NV, you can compare the effects of market volatilities on Castle Biosciences and Qiagen NV 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 Castle Biosciences with a short position of Qiagen NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castle Biosciences and Qiagen NV.
Diversification Opportunities for Castle Biosciences and Qiagen NV
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Castle and Qiagen is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Castle Biosciences and Qiagen NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiagen NV and Castle Biosciences 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 Castle Biosciences are associated (or correlated) with Qiagen NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiagen NV has no effect on the direction of Castle Biosciences i.e., Castle Biosciences and Qiagen NV go up and down completely randomly.
Pair Corralation between Castle Biosciences and Qiagen NV
Given the investment horizon of 90 days Castle Biosciences is expected to under-perform the Qiagen NV. In addition to that, Castle Biosciences is 4.93 times more volatile than Qiagen NV. It trades about -0.09 of its total potential returns per unit of risk. Qiagen NV is currently generating about 0.15 per unit of volatility. If you would invest 4,482 in Qiagen NV on October 24, 2024 and sell it today you would earn a total of 118.00 from holding Qiagen NV or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castle Biosciences vs. Qiagen NV
Performance |
| Timeline |
| Castle Biosciences |
| Qiagen NV |
Castle Biosciences and Qiagen NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castle Biosciences and Qiagen NV
The main advantage of trading using opposite Castle Biosciences and Qiagen NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castle Biosciences position performs unexpectedly, Qiagen NV 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 Qiagen NV will offset losses from the drop in Qiagen NV's long position.| Castle Biosciences vs. Caredx Inc | Castle Biosciences vs. Twist Bioscience Corp | Castle Biosciences vs. Biodesix | Castle Biosciences vs. Natera Inc |
| Qiagen NV vs. Neogen | Qiagen NV vs. Aclaris Therapeutics | Qiagen NV vs. IQVIA Holdings | Qiagen NV vs. Medpace Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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