Correlation Between NanoString Technologies and Veracyte

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

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

Diversification Opportunities for NanoString Technologies and Veracyte

-0.7

Correlation Coefficient

NanoString Technologies  Veracyte

Excellent diversification

The 3 months correlation between NanoString and Veracyte is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding NanoString Technologies and Veracyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veracyte and NanoString Technologies 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 NanoString Technologies are associated (or correlated) with Veracyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veracyte has no effect on the direction of NanoString Technologies i.e., NanoString Technologies and Veracyte go up and down completely randomly.

Pair Corralation between NanoString Technologies and Veracyte

If you would invest  3,431  in Veracyte on September 2, 2024 and sell it today you would earn a total of  864.00  from holding Veracyte or generate 25.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	4.76%
Values	Daily Returns

NanoString Technologies  vs.  Veracyte

NanoString Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

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

Veracyte

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Veracyte are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Veracyte unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NanoString Technologies and Veracyte

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

The idea behind NanoString Technologies and Veracyte 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.