Correlation Between GeneDx Holdings and Nexalin Technology
Can any of the company-specific risk be diversified away by investing in both GeneDx Holdings and Nexalin Technology 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 Nexalin Technology 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 Nexalin Technology, you can compare the effects of market volatilities on GeneDx Holdings and Nexalin Technology 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 Nexalin Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GeneDx Holdings and Nexalin Technology.
Diversification Opportunities for GeneDx Holdings and Nexalin Technology
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GeneDx and Nexalin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding GeneDx Holdings Corp and Nexalin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexalin Technology 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 Nexalin Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexalin Technology has no effect on the direction of GeneDx Holdings i.e., GeneDx Holdings and Nexalin Technology go up and down completely randomly.
Pair Corralation between GeneDx Holdings and Nexalin Technology
Considering the 90-day investment horizon GeneDx Holdings is expected to generate 34.08 times less return on investment than Nexalin Technology. But when comparing it to its historical volatility, GeneDx Holdings Corp is 29.79 times less risky than Nexalin Technology. It trades about 0.18 of its potential returns per unit of risk. Nexalin Technology is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Nexalin Technology on September 2, 2024 and sell it today you would earn a total of 51.00 from holding Nexalin Technology or generate 463.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.63% |
| Values | Daily Returns |
GeneDx Holdings Corp vs. Nexalin Technology
Performance |
| Timeline |
| GeneDx Holdings Corp |
| Nexalin Technology |
GeneDx Holdings and Nexalin Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GeneDx Holdings and Nexalin Technology
The main advantage of trading using opposite GeneDx Holdings and Nexalin Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GeneDx Holdings position performs unexpectedly, Nexalin Technology 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 Nexalin Technology will offset losses from the drop in Nexalin Technology's long position.| GeneDx Holdings vs. Privia Health Group | GeneDx Holdings vs. HealthStream | GeneDx Holdings vs. Certara | GeneDx Holdings vs. National Research Corp |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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