Correlation Between AWILCO DRILLING and 10X GENOMICS

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

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

Diversification Opportunities for AWILCO DRILLING and 10X GENOMICS

-0.16

Correlation Coefficient

AWILCO DRILLING  10X GENOMICS

Good diversification

The 3 months correlation between AWILCO and 10X is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AWILCO DRILLING PLC and 10X GENOMICS DL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X GENOMICS DL and AWILCO DRILLING 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 AWILCO DRILLING PLC are associated (or correlated) with 10X GENOMICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X GENOMICS DL has no effect on the direction of AWILCO DRILLING i.e., AWILCO DRILLING and 10X GENOMICS go up and down completely randomly.

Pair Corralation between AWILCO DRILLING and 10X GENOMICS

Assuming the 90 days trading horizon AWILCO DRILLING PLC is expected to generate 0.83 times more return on investment than 10X GENOMICS. However, AWILCO DRILLING PLC is 1.21 times less risky than 10X GENOMICS. It trades about 0.06 of its potential returns per unit of risk. 10X GENOMICS DL is currently generating about 0.02 per unit of risk. If you would invest  180.00  in AWILCO DRILLING PLC on October 11, 2024 and sell it today you would earn a total of  6.00  from holding AWILCO DRILLING PLC or generate 3.33% return on investment over 90 days.

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

AWILCO DRILLING PLC  vs.  10X GENOMICS DL

AWILCO DRILLING PLC

Risk-Adjusted Performance

0 of 100

Insignificant

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

10X GENOMICS DL

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 10X GENOMICS DL are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, 10X GENOMICS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AWILCO DRILLING and 10X GENOMICS

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

The idea behind AWILCO DRILLING PLC and 10X GENOMICS DL 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.