Correlation Between 26442EAF7 and GeneDx Holdings

Can any of the company-specific risk be diversified away by investing in both 26442EAF7 and GeneDx 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 26442EAF7 and GeneDx Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DUKE ENERGY OHIO and GeneDx Holdings Corp, you can compare the effects of market volatilities on 26442EAF7 and GeneDx 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 26442EAF7 with a short position of GeneDx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442EAF7 and GeneDx Holdings.

Diversification Opportunities for 26442EAF7 and GeneDx Holdings

0.11

Correlation Coefficient

26442EAF7  GeneDx Holdings

Average diversification

The 3 months correlation between 26442EAF7 and GeneDx is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding DUKE ENERGY OHIO and GeneDx Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeneDx Holdings Corp and 26442EAF7 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 DUKE ENERGY OHIO are associated (or correlated) with GeneDx Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GeneDx Holdings Corp has no effect on the direction of 26442EAF7 i.e., 26442EAF7 and GeneDx Holdings go up and down completely randomly.

Pair Corralation between 26442EAF7 and GeneDx Holdings

Assuming the 90 days trading horizon DUKE ENERGY OHIO is expected to under-perform the GeneDx Holdings. But the bond apears to be less risky and, when comparing its historical volatility, DUKE ENERGY OHIO is 20.4 times less risky than GeneDx Holdings. The bond trades about -0.15 of its potential returns per unit of risk. The GeneDx Holdings Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  6,815  in GeneDx Holdings Corp on December 11, 2024 and sell it today you would earn a total of  2,151  from holding GeneDx Holdings Corp or generate 31.56% return on investment over 90 days.

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

DUKE ENERGY OHIO  vs.  GeneDx Holdings Corp

DUKE ENERGY OHIO

Risk-Adjusted Performance

Very Weak

Over the last 90 days DUKE ENERGY OHIO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 26442EAF7 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

GeneDx Holdings Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GeneDx Holdings Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, GeneDx Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 26442EAF7 and GeneDx Holdings

The main advantage of trading using opposite 26442EAF7 and GeneDx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442EAF7 position performs unexpectedly, GeneDx 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 GeneDx Holdings will offset losses from the drop in GeneDx Holdings' long position.

The idea behind DUKE ENERGY OHIO and GeneDx Holdings 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.