Correlation Between 10X Genomics and HealthStream
Can any of the company-specific risk be diversified away by investing in both 10X Genomics and HealthStream 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 HealthStream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 10X Genomics and HealthStream, you can compare the effects of market volatilities on 10X Genomics and HealthStream 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 HealthStream. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X Genomics and HealthStream.
Diversification Opportunities for 10X Genomics and HealthStream
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 10X and HealthStream is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding 10X Genomics and HealthStream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HealthStream 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 HealthStream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HealthStream has no effect on the direction of 10X Genomics i.e., 10X Genomics and HealthStream go up and down completely randomly.
Pair Corralation between 10X Genomics and HealthStream
Considering the 90-day investment horizon 10X Genomics is expected to generate 3.62 times more return on investment than HealthStream. However, 10X Genomics is 3.62 times more volatile than HealthStream. It trades about 0.01 of its potential returns per unit of risk. HealthStream is currently generating about -0.03 per unit of risk. If you would invest 1,357 in 10X Genomics on September 20, 2024 and sell it today you would lose (15.00) from holding 10X Genomics or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
10X Genomics vs. HealthStream
Performance |
| Timeline |
| 10X Genomics |
| HealthStream |
10X Genomics and HealthStream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 10X Genomics and HealthStream
The main advantage of trading using opposite 10X Genomics and HealthStream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X Genomics position performs unexpectedly, HealthStream 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 HealthStream will offset losses from the drop in HealthStream's long position.| 10X Genomics vs. Twist Bioscience Corp | 10X Genomics vs. Fate Therapeutics | 10X Genomics vs. Beam Therapeutics | 10X Genomics vs. Veracyte |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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