Correlation Between Sera Prognostics and Burning Rock
Can any of the company-specific risk be diversified away by investing in both Sera Prognostics 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 Sera Prognostics and Burning Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sera Prognostics and Burning Rock Biotech, you can compare the effects of market volatilities on Sera Prognostics 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 Sera Prognostics with a short position of Burning Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sera Prognostics and Burning Rock.
Diversification Opportunities for Sera Prognostics and Burning Rock
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sera and Burning is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sera Prognostics 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 Sera Prognostics 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 Sera Prognostics 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 Sera Prognostics i.e., Sera Prognostics and Burning Rock go up and down completely randomly.
Pair Corralation between Sera Prognostics and Burning Rock
Given the investment horizon of 90 days Sera Prognostics is expected to under-perform the Burning Rock. In addition to that, Sera Prognostics is 1.53 times more volatile than Burning Rock Biotech. It trades about -0.2 of its total potential returns per unit of risk. Burning Rock Biotech is currently generating about -0.11 per unit of volatility. If you would invest 739.00 in Burning Rock Biotech on November 2, 2024 and sell it today you would lose (61.00) from holding Burning Rock Biotech or give up 8.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sera Prognostics vs. Burning Rock Biotech
Performance |
| Timeline |
| Sera Prognostics |
| Burning Rock Biotech |
Sera Prognostics and Burning Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sera Prognostics and Burning Rock
The main advantage of trading using opposite Sera Prognostics and Burning Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sera Prognostics 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.| Sera Prognostics vs. Fonar | Sera Prognostics vs. Burning Rock Biotech | Sera Prognostics vs. Exagen Inc | Sera Prognostics vs. Sotera Health Co |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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