Correlation Between GeneDx Holdings and Bluejay Diagnostics
Can any of the company-specific risk be diversified away by investing in both GeneDx Holdings and Bluejay Diagnostics 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 GeneDx Holdings and Bluejay Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GeneDx Holdings Corp and Bluejay Diagnostics, you can compare the effects of market volatilities on GeneDx Holdings and Bluejay Diagnostics 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 GeneDx Holdings with a short position of Bluejay Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GeneDx Holdings and Bluejay Diagnostics.
Diversification Opportunities for GeneDx Holdings and Bluejay Diagnostics
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GeneDx and Bluejay is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding GeneDx Holdings Corp and Bluejay Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluejay Diagnostics and GeneDx Holdings 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 GeneDx Holdings Corp are associated (or correlated) with Bluejay Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluejay Diagnostics has no effect on the direction of GeneDx Holdings i.e., GeneDx Holdings and Bluejay Diagnostics go up and down completely randomly.
Pair Corralation between GeneDx Holdings and Bluejay Diagnostics
Considering the 90-day investment horizon GeneDx Holdings Corp is expected to generate 0.5 times more return on investment than Bluejay Diagnostics. However, GeneDx Holdings Corp is 1.99 times less risky than Bluejay Diagnostics. It trades about 0.19 of its potential returns per unit of risk. Bluejay Diagnostics is currently generating about 0.02 per unit of risk. If you would invest 5,606 in GeneDx Holdings Corp on August 28, 2024 and sell it today you would earn a total of 2,440 from holding GeneDx Holdings Corp or generate 43.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GeneDx Holdings Corp vs. Bluejay Diagnostics
Performance |
| Timeline |
| GeneDx Holdings Corp |
| Bluejay Diagnostics |
GeneDx Holdings and Bluejay Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GeneDx Holdings and Bluejay Diagnostics
The main advantage of trading using opposite GeneDx Holdings and Bluejay Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GeneDx Holdings position performs unexpectedly, Bluejay Diagnostics 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 Bluejay Diagnostics will offset losses from the drop in Bluejay Diagnostics' long position.| GeneDx Holdings vs. Privia Health Group | GeneDx Holdings vs. HealthStream | GeneDx Holdings vs. Certara | GeneDx Holdings vs. National Research Corp |
| Bluejay Diagnostics vs. Bone Biologics Corp | Bluejay Diagnostics vs. Nuwellis | Bluejay Diagnostics vs. Heart Test Laboratories | Bluejay Diagnostics vs. Tivic Health Systems |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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