Correlation Between Myriad Genetics and Castle Biosciences
Can any of the company-specific risk be diversified away by investing in both Myriad Genetics and Castle Biosciences 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 Myriad Genetics and Castle Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myriad Genetics and Castle Biosciences, you can compare the effects of market volatilities on Myriad Genetics and Castle Biosciences 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 Myriad Genetics with a short position of Castle Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myriad Genetics and Castle Biosciences.
Diversification Opportunities for Myriad Genetics and Castle Biosciences
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Myriad and Castle is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Myriad Genetics and Castle Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castle Biosciences and Myriad Genetics 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 Myriad Genetics are associated (or correlated) with Castle Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castle Biosciences has no effect on the direction of Myriad Genetics i.e., Myriad Genetics and Castle Biosciences go up and down completely randomly.
Pair Corralation between Myriad Genetics and Castle Biosciences
Given the investment horizon of 90 days Myriad Genetics is expected to under-perform the Castle Biosciences. In addition to that, Myriad Genetics is 1.21 times more volatile than Castle Biosciences. It trades about -0.34 of its total potential returns per unit of risk. Castle Biosciences is currently generating about -0.11 per unit of volatility. If you would invest 3,240 in Castle Biosciences on August 28, 2024 and sell it today you would lose (289.00) from holding Castle Biosciences or give up 8.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Myriad Genetics vs. Castle Biosciences
Performance |
| Timeline |
| Myriad Genetics |
| Castle Biosciences |
Myriad Genetics and Castle Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myriad Genetics and Castle Biosciences
The main advantage of trading using opposite Myriad Genetics and Castle Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myriad Genetics position performs unexpectedly, Castle Biosciences 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 Castle Biosciences will offset losses from the drop in Castle Biosciences' long position.| Myriad Genetics vs. Guardant Health | Myriad Genetics vs. Caredx Inc | Myriad Genetics vs. Castle Biosciences | Myriad Genetics vs. Sotera Health Co |
| Castle Biosciences vs. Caredx Inc | Castle Biosciences vs. Twist Bioscience Corp | Castle Biosciences vs. Biodesix | Castle Biosciences vs. Natera 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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