Correlation Between GeneDx Holdings and WashTec AG
Can any of the company-specific risk be diversified away by investing in both GeneDx Holdings and WashTec AG 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 WashTec AG 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 WashTec AG, you can compare the effects of market volatilities on GeneDx Holdings and WashTec AG 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 WashTec AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GeneDx Holdings and WashTec AG.
Diversification Opportunities for GeneDx Holdings and WashTec AG
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GeneDx and WashTec is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding GeneDx Holdings Corp and WashTec AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WashTec AG 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 WashTec AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WashTec AG has no effect on the direction of GeneDx Holdings i.e., GeneDx Holdings and WashTec AG go up and down completely randomly.
Pair Corralation between GeneDx Holdings and WashTec AG
Considering the 90-day investment horizon GeneDx Holdings Corp is expected to generate 2.94 times more return on investment than WashTec AG. However, GeneDx Holdings is 2.94 times more volatile than WashTec AG. It trades about 0.18 of its potential returns per unit of risk. WashTec AG is currently generating about 0.05 per unit of risk. If you would invest 442.00 in GeneDx Holdings Corp on December 10, 2024 and sell it today you would earn a total of 9,359 from holding GeneDx Holdings Corp or generate 2117.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
GeneDx Holdings Corp vs. WashTec AG
Performance |
| Timeline |
| GeneDx Holdings Corp |
| WashTec AG |
GeneDx Holdings and WashTec AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GeneDx Holdings and WashTec AG
The main advantage of trading using opposite GeneDx Holdings and WashTec AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GeneDx Holdings position performs unexpectedly, WashTec AG 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 WashTec AG will offset losses from the drop in WashTec AG's long position.| GeneDx Holdings vs. Privia Health Group | ||
| GeneDx Holdings vs. HealthStream | ||
| GeneDx Holdings vs. Certara | ||
| GeneDx Holdings vs. National Research Corp |
| WashTec AG vs. Ramsay Health Care | ||
| WashTec AG vs. Medical Facilities | ||
| WashTec AG vs. Jack Nathan Medical | ||
| WashTec AG vs. Fresenius SE 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |