Correlation Between Identa Corp and Illumina
Can any of the company-specific risk be diversified away by investing in both Identa Corp and Illumina 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 Identa Corp and Illumina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identa Corp and Illumina, you can compare the effects of market volatilities on Identa Corp and Illumina 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 Identa Corp with a short position of Illumina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identa Corp and Illumina.
Diversification Opportunities for Identa Corp and Illumina
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Identa and Illumina is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Identa Corp and Illumina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Illumina and Identa Corp 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 Identa Corp are associated (or correlated) with Illumina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Illumina has no effect on the direction of Identa Corp i.e., Identa Corp and Illumina go up and down completely randomly.
Pair Corralation between Identa Corp and Illumina
Given the investment horizon of 90 days Identa Corp is expected to generate 9.66 times more return on investment than Illumina. However, Identa Corp is 9.66 times more volatile than Illumina. It trades about 0.18 of its potential returns per unit of risk. Illumina is currently generating about -0.16 per unit of risk. If you would invest 13.00 in Identa Corp on January 25, 2024 and sell it today you would earn a total of 9.00 from holding Identa Corp or generate 69.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Identa Corp vs. Illumina
Performance |
Timeline |
Identa Corp |
Illumina |
Identa Corp and Illumina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Identa Corp and Illumina
The main advantage of trading using opposite Identa Corp and Illumina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identa Corp position performs unexpectedly, Illumina 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 Illumina will offset losses from the drop in Illumina's long position.Identa Corp vs. BiodesixInc | Identa Corp vs. Aclaris Therapeutics | Identa Corp vs. Castle Biosciences | Identa Corp vs. Prenetics Global |
Illumina vs. Fonar | Illumina vs. Burning Rock BiotechLtd | Illumina vs. Sera Prognostics | Illumina vs. Psychemedics |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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