Correlation Between NanoString Technologies and Veracyte
Can any of the company-specific risk be diversified away by investing in both NanoString Technologies and Veracyte 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 NanoString Technologies and Veracyte into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NanoString Technologies and Veracyte, you can compare the effects of market volatilities on NanoString Technologies and Veracyte 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 NanoString Technologies with a short position of Veracyte. Check out your portfolio center. Please also check ongoing floating volatility patterns of NanoString Technologies and Veracyte.
Diversification Opportunities for NanoString Technologies and Veracyte
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NanoString and Veracyte is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding NanoString Technologies and Veracyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veracyte and NanoString Technologies 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 NanoString Technologies are associated (or correlated) with Veracyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veracyte has no effect on the direction of NanoString Technologies i.e., NanoString Technologies and Veracyte go up and down completely randomly.
Pair Corralation between NanoString Technologies and Veracyte
Given the investment horizon of 90 days NanoString Technologies is expected to under-perform the Veracyte. In addition to that, NanoString Technologies is 1.55 times more volatile than Veracyte. It trades about -0.1 of its total potential returns per unit of risk. Veracyte is currently generating about 0.06 per unit of volatility. If you would invest 2,306 in Veracyte on August 31, 2024 and sell it today you would earn a total of 1,983 from holding Veracyte or generate 85.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 28.51% |
| Values | Daily Returns |
NanoString Technologies vs. Veracyte
Performance |
| Timeline |
| NanoString Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Veracyte |
NanoString Technologies and Veracyte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NanoString Technologies and Veracyte
The main advantage of trading using opposite NanoString Technologies and Veracyte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NanoString Technologies position performs unexpectedly, Veracyte 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 Veracyte will offset losses from the drop in Veracyte's long position.| NanoString Technologies vs. Veracyte | NanoString Technologies vs. Syros Pharmaceuticals | NanoString Technologies vs. Seres Therapeutics | NanoString Technologies vs. Iovance Biotherapeutics |
| Veracyte vs. Crinetics Pharmaceuticals | Veracyte vs. Viridian Therapeutics | Veracyte vs. Cytokinetics | Veracyte vs. Structure Therapeutics American |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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