Correlation Between Bionano Genomics and Envista Holdings

Can any of the company-specific risk be diversified away by investing in both Bionano Genomics and Envista Holdings 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 Bionano Genomics and Envista Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bionano Genomics and Envista Holdings Corp, you can compare the effects of market volatilities on Bionano Genomics and Envista Holdings 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 Bionano Genomics with a short position of Envista Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionano Genomics and Envista Holdings.

Diversification Opportunities for Bionano Genomics and Envista Holdings

-0.49

Correlation Coefficient

Bionano Genomics  Envista Holdings

Very good diversification

The 3 months correlation between Bionano and Envista is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bionano Genomics and Envista Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Envista Holdings Corp and Bionano 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 Bionano Genomics are associated (or correlated) with Envista Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Envista Holdings Corp has no effect on the direction of Bionano Genomics i.e., Bionano Genomics and Envista Holdings go up and down completely randomly.

Pair Corralation between Bionano Genomics and Envista Holdings

Given the investment horizon of 90 days Bionano Genomics is expected to under-perform the Envista Holdings. In addition to that, Bionano Genomics is 2.01 times more volatile than Envista Holdings Corp. It trades about -0.2 of its total potential returns per unit of risk. Envista Holdings Corp is currently generating about -0.33 per unit of volatility. If you would invest  2,218  in Envista Holdings Corp on September 24, 2024 and sell it today you would lose (352.00) from holding Envista Holdings Corp or give up 15.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bionano Genomics  vs.  Envista Holdings Corp

Bionano Genomics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bionano Genomics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Envista Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Envista Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Envista Holdings is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Bionano Genomics and Envista Holdings

The main advantage of trading using opposite Bionano Genomics and Envista Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionano Genomics position performs unexpectedly, Envista Holdings 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 Envista Holdings will offset losses from the drop in Envista Holdings' long position.

The idea behind Bionano Genomics and Envista Holdings Corp 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.