Correlation Between 10X Genomics and American Well
Can any of the company-specific risk be diversified away by investing in both 10X Genomics and American Well 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 10X Genomics and American Well into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 10X Genomics and American Well Corp, you can compare the effects of market volatilities on 10X Genomics and American Well 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 10X Genomics with a short position of American Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X Genomics and American Well.
Diversification Opportunities for 10X Genomics and American Well
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between 10X and American is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding 10X Genomics and American Well Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Well Corp and 10X Genomics 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 10X Genomics are associated (or correlated) with American Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Well Corp has no effect on the direction of 10X Genomics i.e., 10X Genomics and American Well go up and down completely randomly.
Pair Corralation between 10X Genomics and American Well
Considering the 90-day investment horizon 10X Genomics is expected to generate 0.94 times more return on investment than American Well. However, 10X Genomics is 1.07 times less risky than American Well. It trades about -0.03 of its potential returns per unit of risk. American Well Corp is currently generating about -0.06 per unit of risk. If you would invest 1,586 in 10X Genomics on August 28, 2024 and sell it today you would lose (56.00) from holding 10X Genomics or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
10X Genomics vs. American Well Corp
Performance |
| Timeline |
| 10X Genomics |
| American Well Corp |
10X Genomics and American Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 10X Genomics and American Well
The main advantage of trading using opposite 10X Genomics and American Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X Genomics position performs unexpectedly, American Well 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 American Well will offset losses from the drop in American Well's long position.| 10X Genomics vs. Fonar | 10X Genomics vs. Burning Rock Biotech | 10X Genomics vs. Sera Prognostics | 10X Genomics vs. Exagen Inc |
| American Well vs. Doximity | American Well vs. Certara | American Well vs. Teladoc | American Well vs. Definitive Healthcare 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |