Correlation Between Singular Genomics and InfuSystems Holdings

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

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

Diversification Opportunities for Singular Genomics and InfuSystems Holdings

0.78

Correlation Coefficient

Singular Genomics  InfuSystems Holdings

Poor diversification

The 3 months correlation between Singular and InfuSystems is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Singular Genomics Systems and InfuSystems Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InfuSystems Holdings and Singular Genomics 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 Singular Genomics Systems are associated (or correlated) with InfuSystems Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InfuSystems Holdings has no effect on the direction of Singular Genomics i.e., Singular Genomics and InfuSystems Holdings go up and down completely randomly.

Pair Corralation between Singular Genomics and InfuSystems Holdings

Given the investment horizon of 90 days Singular Genomics Systems is expected to generate 0.57 times more return on investment than InfuSystems Holdings. However, Singular Genomics Systems is 1.75 times less risky than InfuSystems Holdings. It trades about -0.08 of its potential returns per unit of risk. InfuSystems Holdings is currently generating about -0.06 per unit of risk. If you would invest  2,171  in Singular Genomics Systems on December 2, 2024 and sell it today you would lose (170.00) from holding Singular Genomics Systems or give up 7.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	91.8%
Values	Daily Returns

Singular Genomics Systems  vs.  InfuSystems Holdings

Singular Genomics Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Singular Genomics Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

InfuSystems Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days InfuSystems Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Singular Genomics and InfuSystems Holdings

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

The idea behind Singular Genomics Systems and InfuSystems Holdings 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.