Correlation Between GeneDx Holdings and TOLEDO

Can any of the company-specific risk be diversified away by investing in both GeneDx Holdings and TOLEDO 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 TOLEDO 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 TOLEDO HOSP 5325, you can compare the effects of market volatilities on GeneDx Holdings and TOLEDO 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 TOLEDO. Check out your portfolio center. Please also check ongoing floating volatility patterns of GeneDx Holdings and TOLEDO.

Diversification Opportunities for GeneDx Holdings and TOLEDO

0.49

Correlation Coefficient

GeneDx Holdings  TOLEDO

Very weak diversification

The 3 months correlation between GeneDx and TOLEDO is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding GeneDx Holdings Corp and TOLEDO HOSP 5325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOLEDO HOSP 5325 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 TOLEDO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOLEDO HOSP 5325 has no effect on the direction of GeneDx Holdings i.e., GeneDx Holdings and TOLEDO go up and down completely randomly.

Pair Corralation between GeneDx Holdings and TOLEDO

Considering the 90-day investment horizon GeneDx Holdings Corp is expected to generate 3.16 times more return on investment than TOLEDO. However, GeneDx Holdings is 3.16 times more volatile than TOLEDO HOSP 5325. It trades about 0.09 of its potential returns per unit of risk. TOLEDO HOSP 5325 is currently generating about -0.1 per unit of risk. If you would invest  5,882  in GeneDx Holdings Corp on October 25, 2024 and sell it today you would earn a total of  1,695  from holding GeneDx Holdings Corp or generate 28.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	66.1%
Values	Daily Returns

GeneDx Holdings Corp  vs.  TOLEDO HOSP 5325

GeneDx Holdings Corp

Risk-Adjusted Performance

6 of 100

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.

TOLEDO HOSP 5325

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TOLEDO HOSP 5325 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for TOLEDO HOSP 5325 investors.

Pair Trading with GeneDx Holdings and TOLEDO

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

The idea behind GeneDx Holdings Corp and TOLEDO HOSP 5325 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.