Correlation Between Singular Genomics and Xylo Technologies
Can any of the company-specific risk be diversified away by investing in both Singular Genomics and Xylo Technologies 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 Singular Genomics and Xylo Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singular Genomics Systems and Xylo Technologies, you can compare the effects of market volatilities on Singular Genomics and Xylo Technologies 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 Singular Genomics with a short position of Xylo Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singular Genomics and Xylo Technologies.
Diversification Opportunities for Singular Genomics and Xylo Technologies
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singular and Xylo is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Singular Genomics Systems and Xylo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xylo Technologies and Singular Genomics 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 Singular Genomics Systems are associated (or correlated) with Xylo Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xylo Technologies has no effect on the direction of Singular Genomics i.e., Singular Genomics and Xylo Technologies go up and down completely randomly.
Pair Corralation between Singular Genomics and Xylo Technologies
Given the investment horizon of 90 days Singular Genomics Systems is expected to generate 1.58 times more return on investment than Xylo Technologies. However, Singular Genomics is 1.58 times more volatile than Xylo Technologies. It trades about 0.03 of its potential returns per unit of risk. Xylo Technologies is currently generating about -0.03 per unit of risk. If you would invest 2,511 in Singular Genomics Systems on August 31, 2024 and sell it today you would lose (321.00) from holding Singular Genomics Systems or give up 12.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singular Genomics Systems vs. Xylo Technologies
Performance |
| Timeline |
| Singular Genomics Systems |
| Xylo Technologies |
Singular Genomics and Xylo Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singular Genomics and Xylo Technologies
The main advantage of trading using opposite Singular Genomics and Xylo Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singular Genomics position performs unexpectedly, Xylo Technologies 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 Xylo Technologies will offset losses from the drop in Xylo Technologies' long position.| Singular Genomics vs. InfuSystems Holdings | Singular Genomics vs. Pro Dex | Singular Genomics vs. LeMaitre Vascular | Singular Genomics vs. Utah Medical Products |
| Xylo Technologies vs. Constellation Brands Class | Xylo Technologies vs. Usio Inc | Xylo Technologies vs. Diageo PLC ADR | Xylo Technologies vs. Scandinavian Tobacco Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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