Correlation Between 10X Genomics and SpotLite360 Technologies
Can any of the company-specific risk be diversified away by investing in both 10X Genomics and SpotLite360 Technologies 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 SpotLite360 Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 10X Genomics and SpotLite360 Technologies, you can compare the effects of market volatilities on 10X Genomics and SpotLite360 Technologies 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 SpotLite360 Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X Genomics and SpotLite360 Technologies.
Diversification Opportunities for 10X Genomics and SpotLite360 Technologies
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between 10X and SpotLite360 is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding 10X Genomics and SpotLite360 Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpotLite360 Technologies 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 SpotLite360 Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpotLite360 Technologies has no effect on the direction of 10X Genomics i.e., 10X Genomics and SpotLite360 Technologies go up and down completely randomly.
Pair Corralation between 10X Genomics and SpotLite360 Technologies
Considering the 90-day investment horizon 10X Genomics is expected to under-perform the SpotLite360 Technologies. But the stock apears to be less risky and, when comparing its historical volatility, 10X Genomics is 15.86 times less risky than SpotLite360 Technologies. The stock trades about -0.09 of its potential returns per unit of risk. The SpotLite360 Technologies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2.30 in SpotLite360 Technologies on November 3, 2024 and sell it today you would lose (1.70) from holding SpotLite360 Technologies or give up 73.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
10X Genomics vs. SpotLite360 Technologies
Performance |
| Timeline |
| 10X Genomics |
| SpotLite360 Technologies |
10X Genomics and SpotLite360 Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 10X Genomics and SpotLite360 Technologies
The main advantage of trading using opposite 10X Genomics and SpotLite360 Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X Genomics position performs unexpectedly, SpotLite360 Technologies 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 SpotLite360 Technologies will offset losses from the drop in SpotLite360 Technologies' long position.| 10X Genomics vs. Twist Bioscience Corp | 10X Genomics vs. Fate Therapeutics | 10X Genomics vs. Beam Therapeutics | 10X Genomics vs. Veracyte |
| SpotLite360 Technologies vs. Teladoc | SpotLite360 Technologies vs. Veeva Systems Class | SpotLite360 Technologies vs. 10X Genomics | SpotLite360 Technologies vs. GE HealthCare Technologies |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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