Correlation Between Fulgent Genetics and Interpace Biosciences

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

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

Diversification Opportunities for Fulgent Genetics and Interpace Biosciences

-0.36

Correlation Coefficient

Fulgent Genetics  Interpace Biosciences

Very good diversification

The 3 months correlation between Fulgent and Interpace is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fulgent Genetics and Interpace Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interpace Biosciences and Fulgent 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 Fulgent Genetics are associated (or correlated) with Interpace Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interpace Biosciences has no effect on the direction of Fulgent Genetics i.e., Fulgent Genetics and Interpace Biosciences go up and down completely randomly.

Pair Corralation between Fulgent Genetics and Interpace Biosciences

If you would invest  220.00  in Interpace Biosciences on August 31, 2024 and sell it today you would earn a total of  0.00  from holding Interpace Biosciences or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Fulgent Genetics  vs.  Interpace Biosciences

Fulgent Genetics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fulgent Genetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Interpace Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Fulgent Genetics and Interpace Biosciences

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

The idea behind Fulgent Genetics and Interpace Biosciences 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..