Correlation Between Fulgent Genetics and Ontrak
Can any of the company-specific risk be diversified away by investing in both Fulgent Genetics and Ontrak 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 Fulgent Genetics and Ontrak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulgent Genetics and Ontrak Inc, you can compare the effects of market volatilities on Fulgent Genetics and Ontrak 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 Fulgent Genetics with a short position of Ontrak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulgent Genetics and Ontrak.
Diversification Opportunities for Fulgent Genetics and Ontrak
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fulgent and Ontrak is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fulgent Genetics and Ontrak Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ontrak Inc and Fulgent Genetics 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 Fulgent Genetics are associated (or correlated) with Ontrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ontrak Inc has no effect on the direction of Fulgent Genetics i.e., Fulgent Genetics and Ontrak go up and down completely randomly.
Pair Corralation between Fulgent Genetics and Ontrak
Given the investment horizon of 90 days Fulgent Genetics is expected to generate 0.38 times more return on investment than Ontrak. However, Fulgent Genetics is 2.64 times less risky than Ontrak. It trades about -0.03 of its potential returns per unit of risk. Ontrak Inc is currently generating about -0.06 per unit of risk. If you would invest 2,077 in Fulgent Genetics on September 2, 2024 and sell it today you would lose (247.00) from holding Fulgent Genetics or give up 11.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fulgent Genetics vs. Ontrak Inc
Performance |
| Timeline |
| Fulgent Genetics |
| Ontrak Inc |
Fulgent Genetics and Ontrak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fulgent Genetics and Ontrak
The main advantage of trading using opposite Fulgent Genetics and Ontrak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulgent Genetics position performs unexpectedly, Ontrak 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 Ontrak will offset losses from the drop in Ontrak's long position.| Fulgent Genetics vs. Illumina | Fulgent Genetics vs. T2 Biosystms | Fulgent Genetics vs. Agilent Technologies | Fulgent Genetics vs. Mettler Toledo International |
| Ontrak vs. American Well Corp | Ontrak vs. Root Inc | Ontrak vs. Goodrx Holdings | Ontrak vs. Bigcommerce 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |