Correlation Between Revvity and Burning Rock
Can any of the company-specific risk be diversified away by investing in both Revvity and Burning Rock 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 Revvity and Burning Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Revvity and Burning Rock Biotech, you can compare the effects of market volatilities on Revvity and Burning Rock 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 Revvity with a short position of Burning Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Revvity and Burning Rock.
Diversification Opportunities for Revvity and Burning Rock
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Revvity and Burning is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Revvity and Burning Rock Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burning Rock Biotech and Revvity 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 Revvity are associated (or correlated) with Burning Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burning Rock Biotech has no effect on the direction of Revvity i.e., Revvity and Burning Rock go up and down completely randomly.
Pair Corralation between Revvity and Burning Rock
Given the investment horizon of 90 days Revvity is expected to under-perform the Burning Rock. But the stock apears to be less risky and, when comparing its historical volatility, Revvity is 5.4 times less risky than Burning Rock. The stock trades about -0.02 of its potential returns per unit of risk. The Burning Rock Biotech is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 279.00 in Burning Rock Biotech on August 30, 2024 and sell it today you would earn a total of 252.00 from holding Burning Rock Biotech or generate 90.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Revvity vs. Burning Rock Biotech
Performance |
| Timeline |
| Revvity |
| Burning Rock Biotech |
Revvity and Burning Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Revvity and Burning Rock
The main advantage of trading using opposite Revvity and Burning Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Revvity position performs unexpectedly, Burning Rock 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 Burning Rock will offset losses from the drop in Burning Rock's long position.| Revvity vs. Waters | Revvity vs. IDEXX Laboratories | Revvity vs. IQVIA Holdings | Revvity vs. Charles River Laboratories |
| Burning Rock vs. Fonar | Burning Rock vs. Sera Prognostics | Burning Rock vs. Neuronetics | Burning Rock vs. DarioHealth Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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