Correlation Between Nextgen Healthcare and 10X Genomics
Can any of the company-specific risk be diversified away by investing in both Nextgen Healthcare and 10X 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 Nextgen Healthcare and 10X Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextgen Healthcare and 10X Genomics, you can compare the effects of market volatilities on Nextgen Healthcare and 10X 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 Nextgen Healthcare with a short position of 10X Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextgen Healthcare and 10X Genomics.
Diversification Opportunities for Nextgen Healthcare and 10X Genomics
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nextgen and 10X is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nextgen Healthcare and 10X Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X Genomics and Nextgen Healthcare 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 Nextgen Healthcare are associated (or correlated) with 10X Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X Genomics has no effect on the direction of Nextgen Healthcare i.e., Nextgen Healthcare and 10X Genomics go up and down completely randomly.
Pair Corralation between Nextgen Healthcare and 10X Genomics
If you would invest 1,653 in Nextgen Healthcare on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Nextgen Healthcare or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.32% |
| Values | Daily Returns |
Nextgen Healthcare vs. 10X Genomics
Performance |
| Timeline |
| Nextgen Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| 10X Genomics |
Nextgen Healthcare and 10X Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextgen Healthcare and 10X Genomics
The main advantage of trading using opposite Nextgen Healthcare and 10X Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextgen Healthcare position performs unexpectedly, 10X 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 10X Genomics will offset losses from the drop in 10X Genomics' long position.| Nextgen Healthcare vs. National Research Corp | Nextgen Healthcare vs. Definitive Healthcare Corp | Nextgen Healthcare vs. HealthStream | Nextgen Healthcare vs. Forian Inc |
| 10X Genomics vs. Twist Bioscience Corp | 10X Genomics vs. Fate Therapeutics | 10X Genomics vs. Beam Therapeutics | 10X Genomics vs. Veracyte |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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