Correlation Between Varex Imaging and Centogene
Can any of the company-specific risk be diversified away by investing in both Varex Imaging and Centogene 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 Varex Imaging and Centogene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Varex Imaging Corp and Centogene B V, you can compare the effects of market volatilities on Varex Imaging and Centogene 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 Varex Imaging with a short position of Centogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Varex Imaging and Centogene.
Diversification Opportunities for Varex Imaging and Centogene
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Varex and Centogene is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Varex Imaging Corp and Centogene B V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centogene B V and Varex Imaging 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 Varex Imaging Corp are associated (or correlated) with Centogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centogene B V has no effect on the direction of Varex Imaging i.e., Varex Imaging and Centogene go up and down completely randomly.
Pair Corralation between Varex Imaging and Centogene
Given the investment horizon of 90 days Varex Imaging Corp is expected to generate 0.17 times more return on investment than Centogene. However, Varex Imaging Corp is 5.87 times less risky than Centogene. It trades about 0.42 of its potential returns per unit of risk. Centogene B V is currently generating about -0.03 per unit of risk. If you would invest 1,320 in Varex Imaging Corp on September 2, 2024 and sell it today you would earn a total of 348.00 from holding Varex Imaging Corp or generate 26.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Varex Imaging Corp vs. Centogene B V
Performance |
| Timeline |
| Varex Imaging Corp |
| Centogene B V |
Varex Imaging and Centogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Varex Imaging and Centogene
The main advantage of trading using opposite Varex Imaging and Centogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varex Imaging position performs unexpectedly, Centogene 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 Centogene will offset losses from the drop in Centogene's long position.| Varex Imaging vs. Sight Sciences | Varex Imaging vs. Apyx Medical | Varex Imaging vs. Si Bone | Varex Imaging vs. Iradimed Co |
| Centogene vs. Fonar | Centogene vs. Exagen Inc | Centogene vs. Sera Prognostics | Centogene vs. Sotera Health Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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