Correlation Between Fate Therapeutics and 10X Genomics
Can any of the company-specific risk be diversified away by investing in both Fate Therapeutics and 10X Genomics 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 Fate Therapeutics and 10X Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fate Therapeutics and 10X Genomics, you can compare the effects of market volatilities on Fate Therapeutics and 10X Genomics 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 Fate Therapeutics with a short position of 10X Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fate Therapeutics and 10X Genomics.
Diversification Opportunities for Fate Therapeutics and 10X Genomics
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fate and 10X is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Fate Therapeutics and 10X Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X Genomics and Fate Therapeutics 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 Fate Therapeutics are associated (or correlated) with 10X Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X Genomics has no effect on the direction of Fate Therapeutics i.e., Fate Therapeutics and 10X Genomics go up and down completely randomly.
Pair Corralation between Fate Therapeutics and 10X Genomics
Given the investment horizon of 90 days Fate Therapeutics is expected to generate 1.43 times more return on investment than 10X Genomics. However, Fate Therapeutics is 1.43 times more volatile than 10X Genomics. It trades about -0.01 of its potential returns per unit of risk. 10X Genomics is currently generating about -0.07 per unit of risk. If you would invest 486.00 in Fate Therapeutics on August 28, 2024 and sell it today you would lose (244.00) from holding Fate Therapeutics or give up 50.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fate Therapeutics vs. 10X Genomics
Performance |
| Timeline |
| Fate Therapeutics |
| 10X Genomics |
Fate Therapeutics and 10X Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fate Therapeutics and 10X Genomics
The main advantage of trading using opposite Fate Therapeutics and 10X Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fate Therapeutics position performs unexpectedly, 10X Genomics 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 10X Genomics will offset losses from the drop in 10X Genomics' long position.| Fate Therapeutics vs. Atara Biotherapeutics | Fate Therapeutics vs. Sana Biotechnology | Fate Therapeutics vs. Caribou Biosciences | Fate Therapeutics vs. Arcus Biosciences |
| 10X Genomics vs. Twist Bioscience Corp | 10X Genomics vs. Fate Therapeutics | 10X Genomics vs. Beam Therapeutics | 10X Genomics vs. Veracyte |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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