Correlation Between GeneDx Holdings and OneMedNet Corp

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

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

Diversification Opportunities for GeneDx Holdings and OneMedNet Corp

-0.87

Correlation Coefficient

GeneDx Holdings  OneMedNet Corp

Pay attention - limited upside

The 3 months correlation between GeneDx and OneMedNet is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding GeneDx Holdings Corp and OneMedNet Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneMedNet Corp and GeneDx Holdings 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 GeneDx Holdings Corp are associated (or correlated) with OneMedNet Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneMedNet Corp has no effect on the direction of GeneDx Holdings i.e., GeneDx Holdings and OneMedNet Corp go up and down completely randomly.

Pair Corralation between GeneDx Holdings and OneMedNet Corp

Considering the 90-day investment horizon GeneDx Holdings is expected to generate 1.68 times less return on investment than OneMedNet Corp. But when comparing it to its historical volatility, GeneDx Holdings Corp is 4.01 times less risky than OneMedNet Corp. It trades about 0.17 of its potential returns per unit of risk. OneMedNet Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  3.39  in OneMedNet Corp on September 28, 2024 and sell it today you would lose (1.49) from holding OneMedNet Corp or give up 43.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	72.58%
Values	Daily Returns

GeneDx Holdings Corp  vs.  OneMedNet Corp

GeneDx Holdings Corp

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GeneDx Holdings Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent technical and fundamental indicators, GeneDx Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

OneMedNet Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in OneMedNet Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, OneMedNet Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GeneDx Holdings and OneMedNet Corp

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

The idea behind GeneDx Holdings Corp and OneMedNet 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.