Correlation Between 10X Genomics and Teladoc
Can any of the company-specific risk be diversified away by investing in both 10X Genomics and Teladoc 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 Teladoc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 10X Genomics and Teladoc, you can compare the effects of market volatilities on 10X Genomics and Teladoc 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 Teladoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X Genomics and Teladoc.
Diversification Opportunities for 10X Genomics and Teladoc
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 10X and Teladoc is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding 10X Genomics and Teladoc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teladoc 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 Teladoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teladoc has no effect on the direction of 10X Genomics i.e., 10X Genomics and Teladoc go up and down completely randomly.
Pair Corralation between 10X Genomics and Teladoc
Considering the 90-day investment horizon 10X Genomics is expected to under-perform the Teladoc. But the stock apears to be less risky and, when comparing its historical volatility, 10X Genomics is 1.5 times less risky than Teladoc. The stock trades about -0.17 of its potential returns per unit of risk. The Teladoc is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 868.00 in Teladoc on August 24, 2024 and sell it today you would earn a total of 172.00 from holding Teladoc or generate 19.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
10X Genomics vs. Teladoc
Performance |
| Timeline |
| 10X Genomics |
| Teladoc |
10X Genomics and Teladoc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 10X Genomics and Teladoc
The main advantage of trading using opposite 10X Genomics and Teladoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X Genomics position performs unexpectedly, Teladoc 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 Teladoc will offset losses from the drop in Teladoc's long position.| 10X Genomics vs. Twist Bioscience Corp | 10X Genomics vs. Fate Therapeutics | 10X Genomics vs. Beam Therapeutics | 10X Genomics vs. Veracyte |
| Teladoc vs. Veeva Systems Class | Teladoc vs. 10X Genomics | Teladoc vs. GE HealthCare Technologies | Teladoc vs. Progyny |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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