Correlation Between MaxCyte and Rapid Micro
Can any of the company-specific risk be diversified away by investing in both MaxCyte and Rapid Micro 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 MaxCyte and Rapid Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MaxCyte and Rapid Micro Biosystems, you can compare the effects of market volatilities on MaxCyte and Rapid Micro 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 MaxCyte with a short position of Rapid Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of MaxCyte and Rapid Micro.
Diversification Opportunities for MaxCyte and Rapid Micro
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MaxCyte and Rapid is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding MaxCyte and Rapid Micro Biosystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rapid Micro Biosystems and MaxCyte 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 MaxCyte are associated (or correlated) with Rapid Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rapid Micro Biosystems has no effect on the direction of MaxCyte i.e., MaxCyte and Rapid Micro go up and down completely randomly.
Pair Corralation between MaxCyte and Rapid Micro
Given the investment horizon of 90 days MaxCyte is expected to generate 0.98 times more return on investment than Rapid Micro. However, MaxCyte is 1.02 times less risky than Rapid Micro. It trades about 0.01 of its potential returns per unit of risk. Rapid Micro Biosystems is currently generating about -0.11 per unit of risk. If you would invest 354.00 in MaxCyte on August 31, 2024 and sell it today you would lose (2.00) from holding MaxCyte or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MaxCyte vs. Rapid Micro Biosystems
Performance |
| Timeline |
| MaxCyte |
| Rapid Micro Biosystems |
MaxCyte and Rapid Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MaxCyte and Rapid Micro
The main advantage of trading using opposite MaxCyte and Rapid Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MaxCyte position performs unexpectedly, Rapid Micro 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 Rapid Micro will offset losses from the drop in Rapid Micro's long position.| MaxCyte vs. Sight Sciences | MaxCyte vs. CVRx Inc | MaxCyte vs. Neuropace | MaxCyte vs. Rapid Micro Biosystems |
| Rapid Micro vs. Rxsight | Rapid Micro vs. Axogen Inc | Rapid Micro vs. Treace Medical Concepts | Rapid Micro vs. Pulmonx Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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