Correlation Between Sharps Technology and Bionano Genomics
Can any of the company-specific risk be diversified away by investing in both Sharps Technology and Bionano 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 Sharps Technology and Bionano Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharps Technology and Bionano Genomics, you can compare the effects of market volatilities on Sharps Technology and Bionano 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 Sharps Technology with a short position of Bionano Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and Bionano Genomics.
Diversification Opportunities for Sharps Technology and Bionano Genomics
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sharps and Bionano is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology and Bionano Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionano Genomics and Sharps Technology 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 Sharps Technology are associated (or correlated) with Bionano Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionano Genomics has no effect on the direction of Sharps Technology i.e., Sharps Technology and Bionano Genomics go up and down completely randomly.
Pair Corralation between Sharps Technology and Bionano Genomics
Given the investment horizon of 90 days Sharps Technology is expected to generate 1.32 times more return on investment than Bionano Genomics. However, Sharps Technology is 1.32 times more volatile than Bionano Genomics. It trades about 0.01 of its potential returns per unit of risk. Bionano Genomics is currently generating about -0.25 per unit of risk. If you would invest 376.00 in Sharps Technology on August 25, 2024 and sell it today you would lose (23.00) from holding Sharps Technology or give up 6.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sharps Technology vs. Bionano Genomics
Performance |
| Timeline |
| Sharps Technology |
| Bionano Genomics |
Sharps Technology and Bionano Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharps Technology and Bionano Genomics
The main advantage of trading using opposite Sharps Technology and Bionano Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps Technology position performs unexpectedly, Bionano 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 Bionano Genomics will offset losses from the drop in Bionano Genomics' long position.| Sharps Technology vs. JIN MEDICAL INTERNATIONAL | Sharps Technology vs. Meihua International Medical | Sharps Technology vs. GlucoTrack | Sharps Technology vs. Innovative Eyewear |
| Bionano Genomics vs. Fonar | Bionano Genomics vs. Burning Rock Biotech | Bionano Genomics vs. Sera Prognostics | Bionano Genomics vs. Exagen Inc |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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