Correlation Between 23Andme Holding and Bionano Genomics
Can any of the company-specific risk be diversified away by investing in both 23Andme Holding 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 23Andme Holding and Bionano Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 23Andme Holding Co and Bionano Genomics, you can compare the effects of market volatilities on 23Andme Holding 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 23Andme Holding with a short position of Bionano Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of 23Andme Holding and Bionano Genomics.
Diversification Opportunities for 23Andme Holding and Bionano Genomics
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 23Andme and Bionano is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding 23Andme Holding Co and Bionano Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionano Genomics and 23Andme Holding 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 23Andme Holding Co 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 23Andme Holding i.e., 23Andme Holding and Bionano Genomics go up and down completely randomly.
Pair Corralation between 23Andme Holding and Bionano Genomics
Allowing for the 90-day total investment horizon 23Andme Holding Co is expected to generate 1.08 times more return on investment than Bionano Genomics. However, 23Andme Holding is 1.08 times more volatile than Bionano Genomics. It trades about -0.08 of its potential returns per unit of risk. Bionano Genomics is currently generating about -0.15 per unit of risk. If you would invest 6,380 in 23Andme Holding Co on August 24, 2024 and sell it today you would lose (6,062) from holding 23Andme Holding Co or give up 95.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
23Andme Holding Co vs. Bionano Genomics
Performance |
| Timeline |
| 23Andme Holding |
| Bionano Genomics |
23Andme Holding and Bionano Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 23Andme Holding and Bionano Genomics
The main advantage of trading using opposite 23Andme Holding and Bionano Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 23Andme Holding 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.| 23Andme Holding vs. IDEXX Laboratories | 23Andme Holding vs. Twist Bioscience Corp | 23Andme Holding vs. Guardant Health | 23Andme Holding vs. Agilent Technologies |
| Bionano Genomics vs. InfuSystems Holdings | Bionano Genomics vs. Pro Dex | Bionano Genomics vs. LeMaitre Vascular | Bionano Genomics vs. Utah Medical Products |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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