Correlation Between Qiagen NV and NeoGenomics

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

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

Diversification Opportunities for Qiagen NV and NeoGenomics

0.81

Correlation Coefficient

Qiagen NV  NeoGenomics

Very poor diversification

The 3 months correlation between Qiagen and NeoGenomics is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Qiagen NV and NeoGenomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeoGenomics and Qiagen NV 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 Qiagen NV are associated (or correlated) with NeoGenomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeoGenomics has no effect on the direction of Qiagen NV i.e., Qiagen NV and NeoGenomics go up and down completely randomly.

Pair Corralation between Qiagen NV and NeoGenomics

Given the investment horizon of 90 days Qiagen NV is expected to generate 0.26 times more return on investment than NeoGenomics. However, Qiagen NV is 3.83 times less risky than NeoGenomics. It trades about -0.13 of its potential returns per unit of risk. NeoGenomics is currently generating about -0.12 per unit of risk. If you would invest  4,502  in Qiagen NV on December 27, 2024 and sell it today you would lose (544.00) from holding Qiagen NV or give up 12.08% of portfolio value over 90 days.

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

Qiagen NV  vs.  NeoGenomics

Qiagen NV

Risk-Adjusted Performance

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 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 April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

NeoGenomics

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Qiagen NV and NeoGenomics

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

The idea behind Qiagen NV and NeoGenomics 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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.