Correlation Between 10X GENOMICS and OAKRIDGE INTERNATIONAL

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

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

Diversification Opportunities for 10X GENOMICS and OAKRIDGE INTERNATIONAL

-0.56

Correlation Coefficient

10X GENOMICS  OAKRIDGE INTERNATIONAL

Excellent diversification

The 3 months correlation between 10X and OAKRIDGE is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding 10X GENOMICS DL and OAKRIDGE INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKRIDGE INTERNATIONAL and 10X 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 10X GENOMICS DL are associated (or correlated) with OAKRIDGE INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKRIDGE INTERNATIONAL has no effect on the direction of 10X GENOMICS i.e., 10X GENOMICS and OAKRIDGE INTERNATIONAL go up and down completely randomly.

Pair Corralation between 10X GENOMICS and OAKRIDGE INTERNATIONAL

Assuming the 90 days horizon 10X GENOMICS DL is expected to generate 0.98 times more return on investment than OAKRIDGE INTERNATIONAL. However, 10X GENOMICS DL is 1.03 times less risky than OAKRIDGE INTERNATIONAL. It trades about 0.05 of its potential returns per unit of risk. OAKRIDGE INTERNATIONAL is currently generating about -0.07 per unit of risk. If you would invest  1,231  in 10X GENOMICS DL on September 23, 2024 and sell it today you would earn a total of  30.00  from holding 10X GENOMICS DL or generate 2.44% return on investment over 90 days.

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

10X GENOMICS DL  vs.  OAKRIDGE INTERNATIONAL

10X GENOMICS DL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 10X GENOMICS DL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

OAKRIDGE INTERNATIONAL

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in OAKRIDGE INTERNATIONAL are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, OAKRIDGE INTERNATIONAL reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 10X GENOMICS and OAKRIDGE INTERNATIONAL

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

The idea behind 10X GENOMICS DL and OAKRIDGE INTERNATIONAL 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.