Correlation Between 10X Genomics and NewCardio

Can any of the company-specific risk be diversified away by investing in both 10X Genomics and NewCardio 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 10X Genomics and NewCardio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 10X Genomics and NewCardio, you can compare the effects of market volatilities on 10X Genomics and NewCardio 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 10X Genomics with a short position of NewCardio. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X Genomics and NewCardio.

Diversification Opportunities for 10X Genomics and NewCardio

0.0

Correlation Coefficient

10X Genomics  NewCardio

Pay attention - limited upside

The 3 months correlation between 10X and NewCardio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 10X Genomics and NewCardio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewCardio and 10X 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 10X Genomics are associated (or correlated) with NewCardio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewCardio has no effect on the direction of 10X Genomics i.e., 10X Genomics and NewCardio go up and down completely randomly.

Pair Corralation between 10X Genomics and NewCardio

Considering the 90-day investment horizon 10X Genomics is expected to under-perform the NewCardio. But the stock apears to be less risky and, when comparing its historical volatility, 10X Genomics is 29.67 times less risky than NewCardio. The stock trades about -0.14 of its potential returns per unit of risk. The NewCardio is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in NewCardio on December 27, 2024 and sell it today you would earn a total of  0.00  from holding NewCardio or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

10X Genomics  vs.  NewCardio

10X Genomics

Risk-Adjusted Performance

Very Weak

Over the last 90 days 10X Genomics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

NewCardio

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NewCardio are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, NewCardio demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 10X Genomics and NewCardio

The main advantage of trading using opposite 10X Genomics and NewCardio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X Genomics position performs unexpectedly, NewCardio 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 NewCardio will offset losses from the drop in NewCardio's long position.

The idea behind 10X Genomics and NewCardio 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.