Correlation Between ReShape Lifesciences and Singular Genomics
Can any of the company-specific risk be diversified away by investing in both ReShape Lifesciences and Singular 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 ReShape Lifesciences and Singular Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReShape Lifesciences and Singular Genomics Systems, you can compare the effects of market volatilities on ReShape Lifesciences and Singular 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 ReShape Lifesciences with a short position of Singular Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReShape Lifesciences and Singular Genomics.
Diversification Opportunities for ReShape Lifesciences and Singular Genomics
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ReShape and Singular is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ReShape Lifesciences and Singular Genomics Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singular Genomics Systems and ReShape Lifesciences 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 ReShape Lifesciences are associated (or correlated) with Singular Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singular Genomics Systems has no effect on the direction of ReShape Lifesciences i.e., ReShape Lifesciences and Singular Genomics go up and down completely randomly.
Pair Corralation between ReShape Lifesciences and Singular Genomics
Given the investment horizon of 90 days ReShape Lifesciences is expected to under-perform the Singular Genomics. In addition to that, ReShape Lifesciences is 53.07 times more volatile than Singular Genomics Systems. It trades about -0.31 of its total potential returns per unit of risk. Singular Genomics Systems is currently generating about 0.16 per unit of volatility. If you would invest 1,982 in Singular Genomics Systems on November 28, 2024 and sell it today you would earn a total of 19.00 from holding Singular Genomics Systems or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ReShape Lifesciences vs. Singular Genomics Systems
Performance |
| Timeline |
| ReShape Lifesciences |
| Singular Genomics Systems |
ReShape Lifesciences and Singular Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReShape Lifesciences and Singular Genomics
The main advantage of trading using opposite ReShape Lifesciences and Singular Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReShape Lifesciences position performs unexpectedly, Singular 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 Singular Genomics will offset losses from the drop in Singular Genomics' long position.| ReShape Lifesciences vs. SINTX Technologies | ReShape Lifesciences vs. Bone Biologics Corp | ReShape Lifesciences vs. Tivic Health Systems | ReShape Lifesciences vs. Nuwellis |
| Singular Genomics vs. InfuSystems Holdings | Singular Genomics vs. Pro Dex | Singular Genomics vs. LeMaitre Vascular | Singular Genomics vs. Utah Medical Products |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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