Correlation Between 10X GENOMICS and Ping An

Can any of the company-specific risk be diversified away by investing in both 10X GENOMICS and Ping An 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 10X GENOMICS and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 10X GENOMICS DL and Ping An Healthcare, you can compare the effects of market volatilities on 10X GENOMICS and Ping An 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 10X GENOMICS with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X GENOMICS and Ping An.

Diversification Opportunities for 10X GENOMICS and Ping An

0.01

Correlation Coefficient

10X GENOMICS  Ping An

Significant diversification

The 3 months correlation between 10X and Ping is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding 10X GENOMICS DL and Ping An Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Healthcare and 10X GENOMICS 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 10X GENOMICS DL are associated (or correlated) with Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Healthcare has no effect on the direction of 10X GENOMICS i.e., 10X GENOMICS and Ping An go up and down completely randomly.

Pair Corralation between 10X GENOMICS and Ping An

Assuming the 90 days horizon 10X GENOMICS DL is expected to under-perform the Ping An. But the stock apears to be less risky and, when comparing its historical volatility, 10X GENOMICS DL is 1.26 times less risky than Ping An. The stock trades about -0.03 of its potential returns per unit of risk. The Ping An Healthcare is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  130.00  in Ping An Healthcare on September 23, 2024 and sell it today you would lose (55.00) from holding Ping An Healthcare or give up 42.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

10X GENOMICS DL  vs.  Ping An Healthcare

10X GENOMICS DL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 10X GENOMICS DL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Ping An Healthcare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ping An Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ping An is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with 10X GENOMICS and Ping An

The main advantage of trading using opposite 10X GENOMICS and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X GENOMICS position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.

The idea behind 10X GENOMICS DL and Ping An Healthcare pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.