Correlation Between SeqLL and Applied DNA
Can any of the company-specific risk be diversified away by investing in both SeqLL and Applied DNA 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 SeqLL and Applied DNA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeqLL Inc and Applied DNA Sciences, you can compare the effects of market volatilities on SeqLL and Applied DNA 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 SeqLL with a short position of Applied DNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeqLL and Applied DNA.
Diversification Opportunities for SeqLL and Applied DNA
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between SeqLL and Applied is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding SeqLL Inc and Applied DNA Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied DNA Sciences and SeqLL 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 SeqLL Inc are associated (or correlated) with Applied DNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied DNA Sciences has no effect on the direction of SeqLL i.e., SeqLL and Applied DNA go up and down completely randomly.
Pair Corralation between SeqLL and Applied DNA
If you would invest 19.00 in Applied DNA Sciences on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Applied DNA Sciences or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
SeqLL Inc vs. Applied DNA Sciences
Performance |
| Timeline |
| SeqLL Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Applied DNA Sciences |
SeqLL and Applied DNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeqLL and Applied DNA
The main advantage of trading using opposite SeqLL and Applied DNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeqLL position performs unexpectedly, Applied DNA 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 Applied DNA will offset losses from the drop in Applied DNA's long position.| SeqLL vs. Agilent Technologies | SeqLL vs. Genetic Technologies | SeqLL vs. T2 Biosystms | SeqLL vs. iSpecimen |
| Applied DNA vs. Biodesix | Applied DNA vs. DarioHealth Corp | Applied DNA vs. Exagen Inc | Applied DNA vs. Burning Rock Biotech |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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