Correlation Between 10X Genomics and Scworx Corp

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

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

Diversification Opportunities for 10X Genomics and Scworx Corp

0.92

Correlation Coefficient

10X Genomics  Scworx Corp

Almost no diversification

The 3 months correlation between 10X and Scworx is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding 10X Genomics and Scworx Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scworx Corp 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 Scworx Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scworx Corp has no effect on the direction of 10X Genomics i.e., 10X Genomics and Scworx Corp go up and down completely randomly.

Pair Corralation between 10X Genomics and Scworx Corp

Considering the 90-day investment horizon 10X Genomics is expected to generate 0.79 times more return on investment than Scworx Corp. However, 10X Genomics is 1.27 times less risky than Scworx Corp. It trades about -0.14 of its potential returns per unit of risk. Scworx Corp is currently generating about -0.24 per unit of risk. If you would invest  1,467  in 10X Genomics on December 26, 2024 and sell it today you would lose (509.00) from holding 10X Genomics or give up 34.7% of portfolio value over 90 days.

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

10X Genomics  vs.  Scworx Corp

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.

Scworx Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Scworx Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with 10X Genomics and Scworx Corp

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

The idea behind 10X Genomics and Scworx Corp 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.