Correlation Between Exagen and Bionano Genomics
Can any of the company-specific risk be diversified away by investing in both Exagen and Bionano Genomics 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 Exagen and Bionano Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exagen Inc and Bionano Genomics, you can compare the effects of market volatilities on Exagen and Bionano Genomics 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 Exagen with a short position of Bionano Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exagen and Bionano Genomics.
Diversification Opportunities for Exagen and Bionano Genomics
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Exagen and Bionano is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Exagen Inc and Bionano Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionano Genomics and Exagen 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 Exagen Inc are associated (or correlated) with Bionano Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionano Genomics has no effect on the direction of Exagen i.e., Exagen and Bionano Genomics go up and down completely randomly.
Pair Corralation between Exagen and Bionano Genomics
Considering the 90-day investment horizon Exagen Inc is expected to generate 1.03 times more return on investment than Bionano Genomics. However, Exagen is 1.03 times more volatile than Bionano Genomics. It trades about 0.31 of its potential returns per unit of risk. Bionano Genomics is currently generating about -0.14 per unit of risk. If you would invest 261.00 in Exagen Inc on August 29, 2024 and sell it today you would earn a total of 133.00 from holding Exagen Inc or generate 50.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exagen Inc vs. Bionano Genomics
Performance |
| Timeline |
| Exagen Inc |
| Bionano Genomics |
Exagen and Bionano Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exagen and Bionano Genomics
The main advantage of trading using opposite Exagen and Bionano Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exagen position performs unexpectedly, Bionano Genomics 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 Bionano Genomics will offset losses from the drop in Bionano Genomics' long position.| Exagen vs. Fonar | Exagen vs. Burning Rock Biotech | Exagen vs. Sera Prognostics | Exagen vs. Castle Biosciences |
| Bionano Genomics vs. Intuitive Surgical | Bionano Genomics vs. Innovative Eyewear | Bionano Genomics vs. Stereotaxis | Bionano Genomics vs. Nexgel Inc |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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