Correlation Between WaferGen Bio and Abaxis
Can any of the company-specific risk be diversified away by investing in both WaferGen Bio and Abaxis 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 WaferGen Bio and Abaxis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WaferGen Bio systems and Abaxis Inc, you can compare the effects of market volatilities on WaferGen Bio and Abaxis 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 WaferGen Bio with a short position of Abaxis. Check out your portfolio center. Please also check ongoing floating volatility patterns of WaferGen Bio and Abaxis.
Diversification Opportunities for WaferGen Bio and Abaxis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WaferGen and Abaxis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WaferGen Bio-systems and Abaxis Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abaxis Inc and WaferGen Bio 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 WaferGen Bio systems are associated (or correlated) with Abaxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abaxis Inc has no effect on the direction of WaferGen Bio i.e., WaferGen Bio and Abaxis go up and down completely randomly.
Pair Corralation between WaferGen Bio and Abaxis
If you would invest (100.00) in Abaxis Inc on December 30, 2023 and sell it today you would earn a total of 100.00 from holding Abaxis Inc or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
WaferGen Bio-systems vs. Abaxis Inc
Performance |
Timeline |
WaferGen Bio-systems |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Abaxis Inc |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
WaferGen Bio and Abaxis Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WaferGen Bio and Abaxis
The main advantage of trading using opposite WaferGen Bio and Abaxis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WaferGen Bio position performs unexpectedly, Abaxis 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 Abaxis will offset losses from the drop in Abaxis' long position.WaferGen Bio vs. Rave Restaurant Group | WaferGen Bio vs. Meli Hotels International | WaferGen Bio vs. Wingstop | WaferGen Bio vs. Portillos |
Abaxis vs. Weyco Group | Abaxis vs. Beyond Inc | Abaxis vs. Grocery Outlet Holding | Abaxis vs. Dolphin Entertainment |
Check out your portfolio center.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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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