Correlation Between InfuSystems Holdings and Bionano Genomics

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

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

Diversification Opportunities for InfuSystems Holdings and Bionano Genomics

-0.77

Correlation Coefficient

InfuSystems Holdings  Bionano Genomics

Pay attention - limited upside

The 3 months correlation between InfuSystems and Bionano is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and Bionano Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionano Genomics and InfuSystems 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 InfuSystems Holdings are associated (or correlated) with Bionano Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionano Genomics has no effect on the direction of InfuSystems Holdings i.e., InfuSystems Holdings and Bionano Genomics go up and down completely randomly.

Pair Corralation between InfuSystems Holdings and Bionano Genomics

Given the investment horizon of 90 days InfuSystems Holdings is expected to generate 0.73 times more return on investment than Bionano Genomics. However, InfuSystems Holdings is 1.37 times less risky than Bionano Genomics. It trades about 0.15 of its potential returns per unit of risk. Bionano Genomics is currently generating about -0.14 per unit of risk. If you would invest  651.00  in InfuSystems Holdings on September 13, 2024 and sell it today you would earn a total of  248.00  from holding InfuSystems Holdings or generate 38.1% return on investment over 90 days.

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

InfuSystems Holdings  vs.  Bionano Genomics

InfuSystems Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in InfuSystems Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, InfuSystems Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bionano Genomics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bionano Genomics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with InfuSystems Holdings and Bionano Genomics

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

The idea behind InfuSystems Holdings and Bionano 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.