Correlation Between SeqLL and Genetron Holdings
Can any of the company-specific risk be diversified away by investing in both SeqLL and Genetron Holdings 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 Genetron Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeqLL Inc and Genetron Holdings, you can compare the effects of market volatilities on SeqLL and Genetron Holdings 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 Genetron Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeqLL and Genetron Holdings.
Diversification Opportunities for SeqLL and Genetron Holdings
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SeqLL and Genetron is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SeqLL Inc and Genetron Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genetron Holdings 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 Genetron Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genetron Holdings has no effect on the direction of SeqLL i.e., SeqLL and Genetron Holdings go up and down completely randomly.
Pair Corralation between SeqLL and Genetron Holdings
Considering the 90-day investment horizon SeqLL Inc is expected to generate 5.66 times more return on investment than Genetron Holdings. However, SeqLL is 5.66 times more volatile than Genetron Holdings. It trades about 0.05 of its potential returns per unit of risk. Genetron Holdings is currently generating about 0.0 per unit of risk. If you would invest 50.00 in SeqLL Inc on September 3, 2024 and sell it today you would lose (11.00) from holding SeqLL Inc or give up 22.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SeqLL Inc vs. Genetron Holdings
Performance |
| Timeline |
| SeqLL Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Genetron Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SeqLL and Genetron Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeqLL and Genetron Holdings
The main advantage of trading using opposite SeqLL and Genetron Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeqLL position performs unexpectedly, Genetron Holdings 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 Genetron Holdings will offset losses from the drop in Genetron Holdings' long position.| SeqLL vs. Agilent Technologies | SeqLL vs. Genetic Technologies | SeqLL vs. T2 Biosystms | SeqLL vs. iSpecimen |
| Genetron Holdings vs. Psychemedics | Genetron Holdings vs. Sera Prognostics | Genetron Holdings vs. DarioHealth Corp | Genetron Holdings vs. Biodesix |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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