Correlation Between Humacyte and GeneDx Holdings
Can any of the company-specific risk be diversified away by investing in both Humacyte and GeneDx Holdings 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 Humacyte and GeneDx Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humacyte and GeneDx Holdings Corp, you can compare the effects of market volatilities on Humacyte and GeneDx Holdings 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 Humacyte with a short position of GeneDx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humacyte and GeneDx Holdings.
Diversification Opportunities for Humacyte and GeneDx Holdings
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Humacyte and GeneDx is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Humacyte and GeneDx Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeneDx Holdings Corp and Humacyte 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 Humacyte are associated (or correlated) with GeneDx Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GeneDx Holdings Corp has no effect on the direction of Humacyte i.e., Humacyte and GeneDx Holdings go up and down completely randomly.
Pair Corralation between Humacyte and GeneDx Holdings
Assuming the 90 days horizon Humacyte is expected to under-perform the GeneDx Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Humacyte is 1.31 times less risky than GeneDx Holdings. The stock trades about -0.01 of its potential returns per unit of risk. The GeneDx Holdings Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 19.00 in GeneDx Holdings Corp on November 1, 2024 and sell it today you would earn a total of 2.05 from holding GeneDx Holdings Corp or generate 10.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Humacyte vs. GeneDx Holdings Corp
Performance |
| Timeline |
| Humacyte |
| GeneDx Holdings Corp |
Humacyte and GeneDx Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humacyte and GeneDx Holdings
The main advantage of trading using opposite Humacyte and GeneDx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humacyte position performs unexpectedly, GeneDx Holdings 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 GeneDx Holdings will offset losses from the drop in GeneDx Holdings' long position.The idea behind Humacyte and GeneDx Holdings Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GeneDx Holdings vs. GeneDx Holdings Corp | GeneDx Holdings vs. LMF Acquisition Opportunities | GeneDx Holdings vs. Humacyte |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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