Correlation Between Certara and 10X Genomics

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

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

Diversification Opportunities for Certara and 10X Genomics

0.16

Correlation Coefficient

Certara  10X Genomics

Average diversification

The 3 months correlation between Certara and 10X is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Certara and 10X Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X Genomics and Certara 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 Certara 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 has no effect on the direction of Certara i.e., Certara and 10X Genomics go up and down completely randomly.

Pair Corralation between Certara and 10X Genomics

Given the investment horizon of 90 days Certara is expected to generate 0.68 times more return on investment than 10X Genomics. However, Certara is 1.48 times less risky than 10X Genomics. It trades about -0.01 of its potential returns per unit of risk. 10X Genomics is currently generating about -0.15 per unit of risk. If you would invest  1,054  in Certara on December 29, 2024 and sell it today you would lose (42.00) from holding Certara or give up 3.98% of portfolio value over 90 days.

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

Certara  vs.  10X Genomics

Certara

Risk-Adjusted Performance

Very Weak

Over the last 90 days Certara has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Certara is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

10X Genomics

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Certara and 10X Genomics

The main advantage of trading using opposite Certara and 10X Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Certara 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' long position.

The idea behind Certara and 10X Genomics 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..