Correlation Between ISpecimen and NeoGenomics
Can any of the company-specific risk be diversified away by investing in both ISpecimen and NeoGenomics 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 ISpecimen and NeoGenomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iSpecimen and NeoGenomics, you can compare the effects of market volatilities on ISpecimen and NeoGenomics 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 ISpecimen with a short position of NeoGenomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISpecimen and NeoGenomics.
Diversification Opportunities for ISpecimen and NeoGenomics
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ISpecimen and NeoGenomics is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding iSpecimen and NeoGenomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeoGenomics and ISpecimen 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 iSpecimen are associated (or correlated) with NeoGenomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeoGenomics has no effect on the direction of ISpecimen i.e., ISpecimen and NeoGenomics go up and down completely randomly.
Pair Corralation between ISpecimen and NeoGenomics
Given the investment horizon of 90 days ISpecimen is expected to generate 36.89 times less return on investment than NeoGenomics. In addition to that, ISpecimen is 1.9 times more volatile than NeoGenomics. It trades about 0.01 of its total potential returns per unit of risk. NeoGenomics is currently generating about 0.42 per unit of volatility. If you would invest 1,348 in NeoGenomics on August 28, 2024 and sell it today you would earn a total of 345.00 from holding NeoGenomics or generate 25.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iSpecimen vs. NeoGenomics
Performance |
| Timeline |
| iSpecimen |
| NeoGenomics |
ISpecimen and NeoGenomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISpecimen and NeoGenomics
The main advantage of trading using opposite ISpecimen and NeoGenomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISpecimen position performs unexpectedly, NeoGenomics 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 NeoGenomics will offset losses from the drop in NeoGenomics' long position.| ISpecimen vs. Fonar | ISpecimen vs. Castle Biosciences | ISpecimen vs. Exagen Inc | ISpecimen vs. OncoCyte Corp |
| NeoGenomics vs. Natera Inc | NeoGenomics vs. Qiagen NV | NeoGenomics vs. Neogen | NeoGenomics vs. Guardant Health |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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