Correlation Between Genetic Technologies and Biocept

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

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

Diversification Opportunities for Genetic Technologies and Biocept

0.78

Correlation Coefficient

Genetic Technologies  Biocept

Poor diversification

The 3 months correlation between Genetic and Biocept is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Genetic Technologies and Biocept in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biocept and Genetic Technologies 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 Genetic Technologies are associated (or correlated) with Biocept. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biocept has no effect on the direction of Genetic Technologies i.e., Genetic Technologies and Biocept go up and down completely randomly.

Pair Corralation between Genetic Technologies and Biocept

If you would invest  145.00  in Biocept on September 2, 2024 and sell it today you would earn a total of  0.00  from holding Biocept or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.56%
Values	Daily Returns

Genetic Technologies  vs.  Biocept

Genetic Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genetic Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Biocept

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Biocept has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Biocept is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Genetic Technologies and Biocept

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

The idea behind Genetic Technologies and Biocept 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.