Correlation Between G Medical and Bionano Genomics
Can any of the company-specific risk be diversified away by investing in both G Medical and Bionano 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 G Medical and Bionano Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Medical Innovations and Bionano Genomics, you can compare the effects of market volatilities on G Medical and Bionano 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 G Medical with a short position of Bionano Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Medical and Bionano Genomics.
Diversification Opportunities for G Medical and Bionano Genomics
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GMVD and Bionano is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding G Medical Innovations and Bionano Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionano Genomics and G Medical 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 G Medical Innovations are associated (or correlated) with Bionano Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionano Genomics has no effect on the direction of G Medical i.e., G Medical and Bionano Genomics go up and down completely randomly.
Pair Corralation between G Medical and Bionano Genomics
Given the investment horizon of 90 days G Medical Innovations is expected to under-perform the Bionano Genomics. In addition to that, G Medical is 1.53 times more volatile than Bionano Genomics. It trades about -0.18 of its total potential returns per unit of risk. Bionano Genomics is currently generating about -0.15 per unit of volatility. If you would invest 94,200 in Bionano Genomics on November 2, 2024 and sell it today you would lose (93,681) from holding Bionano Genomics or give up 99.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 22.67% |
| Values | Daily Returns |
G Medical Innovations vs. Bionano Genomics
Performance |
| Timeline |
| G Medical Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bionano Genomics |
G Medical and Bionano Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Medical and Bionano Genomics
The main advantage of trading using opposite G Medical and Bionano Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Medical position performs unexpectedly, Bionano 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 Bionano Genomics will offset losses from the drop in Bionano Genomics' long position.| G Medical vs. Innovative Eyewear | G Medical vs. Sharps Technology | G Medical vs. JIN MEDICAL INTERNATIONAL | G Medical vs. Nexgel Inc |
| Bionano Genomics vs. Intuitive Surgical | Bionano Genomics vs. Innovative Eyewear | Bionano Genomics vs. Stereotaxis | Bionano Genomics vs. Nexgel Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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