Correlation Between GeneDx Holdings and Check Cap

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

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

Diversification Opportunities for GeneDx Holdings and Check Cap

-0.28

Correlation Coefficient

GeneDx Holdings  Check Cap

Very good diversification

The 3 months correlation between GeneDx and Check is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding GeneDx Holdings Corp and Check Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Cap and GeneDx Holdings 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 GeneDx Holdings Corp are associated (or correlated) with Check Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Cap has no effect on the direction of GeneDx Holdings i.e., GeneDx Holdings and Check Cap go up and down completely randomly.

Pair Corralation between GeneDx Holdings and Check Cap

Considering the 90-day investment horizon GeneDx Holdings Corp is expected to generate 0.76 times more return on investment than Check Cap. However, GeneDx Holdings Corp is 1.32 times less risky than Check Cap. It trades about 0.08 of its potential returns per unit of risk. Check Cap is currently generating about 0.0 per unit of risk. If you would invest  7,658  in GeneDx Holdings Corp on December 28, 2024 and sell it today you would earn a total of  1,776  from holding GeneDx Holdings Corp or generate 23.19% return on investment over 90 days.

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

GeneDx Holdings Corp  vs.  Check Cap

GeneDx Holdings Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GeneDx Holdings Corp are ranked lower than 6 (%) 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.

Check Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Check Cap has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Check Cap is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with GeneDx Holdings and Check Cap

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

The idea behind GeneDx Holdings Corp and Check Cap 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.