Correlation Between Molecular Data and REX American

Can any of the company-specific risk be diversified away by investing in both Molecular Data and REX American 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 Molecular Data and REX American into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Molecular Data and REX American Resources, you can compare the effects of market volatilities on Molecular Data and REX American 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 Molecular Data with a short position of REX American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molecular Data and REX American.

Diversification Opportunities for Molecular Data and REX American

0.0

Correlation Coefficient

Molecular Data  REX American

Pay attention - limited upside

The 3 months correlation between Molecular and REX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Molecular Data and REX American Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REX American Resources and Molecular Data 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 Molecular Data are associated (or correlated) with REX American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REX American Resources has no effect on the direction of Molecular Data i.e., Molecular Data and REX American go up and down completely randomly.

Pair Corralation between Molecular Data and REX American

If you would invest (100.00) in Molecular Data on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Molecular Data or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Molecular Data  vs.  REX American Resources

Molecular Data

Risk-Adjusted Performance

Very Weak

Over the last 90 days Molecular Data has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Molecular Data is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

REX American Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days REX American Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Molecular Data and REX American

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

The idea behind Molecular Data and REX American Resources 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.

Check out your portfolio center.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.