Correlation Between Myriad Genetics and Amer Bio

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

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

Diversification Opportunities for Myriad Genetics and Amer Bio

-0.1

Correlation Coefficient

Myriad Genetics  Amer Bio

Good diversification

The 3 months correlation between Myriad and Amer is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Myriad Genetics and Amer Bio Medica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Bio Medica and Myriad Genetics 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 Myriad Genetics are associated (or correlated) with Amer Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Bio Medica has no effect on the direction of Myriad Genetics i.e., Myriad Genetics and Amer Bio go up and down completely randomly.

Pair Corralation between Myriad Genetics and Amer Bio

If you would invest  1.38  in Amer Bio Medica on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Amer Bio Medica or generate 0.0% return on investment over 90 days.

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

Myriad Genetics  vs.  Amer Bio Medica

Myriad Genetics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Myriad Genetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent 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.

Amer Bio Medica

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Myriad Genetics and Amer Bio

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

The idea behind Myriad Genetics and Amer Bio Medica 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.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.