Correlation Between ProPhase Labs and Qiagen NV

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

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

Diversification Opportunities for ProPhase Labs and Qiagen NV

0.16

Correlation Coefficient

ProPhase Labs  Qiagen NV

Average diversification

The 3 months correlation between ProPhase and Qiagen is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding ProPhase Labs and Qiagen NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiagen NV and ProPhase Labs 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 ProPhase Labs are associated (or correlated) with Qiagen NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiagen NV has no effect on the direction of ProPhase Labs i.e., ProPhase Labs and Qiagen NV go up and down completely randomly.

Pair Corralation between ProPhase Labs and Qiagen NV

Given the investment horizon of 90 days ProPhase Labs is expected to under-perform the Qiagen NV. In addition to that, ProPhase Labs is 2.64 times more volatile than Qiagen NV. It trades about -0.27 of its total potential returns per unit of risk. Qiagen NV is currently generating about 0.39 per unit of volatility. If you would invest  4,099  in Qiagen NV on September 17, 2024 and sell it today you would earn a total of  447.00  from holding Qiagen NV or generate 10.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

ProPhase Labs  vs.  Qiagen NV

ProPhase Labs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProPhase Labs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Qiagen NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Qiagen NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Qiagen NV is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with ProPhase Labs and Qiagen NV

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

The idea behind ProPhase Labs and Qiagen NV 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 Global Correlations module to find global opportunities by holding instruments from different markets.