Correlation Between Sera Prognostics and Biodesix
Can any of the company-specific risk be diversified away by investing in both Sera Prognostics and Biodesix 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 Sera Prognostics and Biodesix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sera Prognostics and Biodesix, you can compare the effects of market volatilities on Sera Prognostics and Biodesix 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 Sera Prognostics with a short position of Biodesix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sera Prognostics and Biodesix.
Diversification Opportunities for Sera Prognostics and Biodesix
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sera and Biodesix is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sera Prognostics and Biodesix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biodesix and Sera Prognostics 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 Sera Prognostics are associated (or correlated) with Biodesix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biodesix has no effect on the direction of Sera Prognostics i.e., Sera Prognostics and Biodesix go up and down completely randomly.
Pair Corralation between Sera Prognostics and Biodesix
Given the investment horizon of 90 days Sera Prognostics is expected to generate 1.39 times more return on investment than Biodesix. However, Sera Prognostics is 1.39 times more volatile than Biodesix. It trades about 0.05 of its potential returns per unit of risk. Biodesix is currently generating about 0.01 per unit of risk. If you would invest 293.00 in Sera Prognostics on May 1, 2025 and sell it today you would lose (3.00) from holding Sera Prognostics or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Sera Prognostics vs. Biodesix
Performance |
| Timeline |
| Sera Prognostics |
| Biodesix |
Sera Prognostics and Biodesix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sera Prognostics and Biodesix
The main advantage of trading using opposite Sera Prognostics and Biodesix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sera Prognostics position performs unexpectedly, Biodesix 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 Biodesix will offset losses from the drop in Biodesix's long position.| Sera Prognostics vs. Fonar | Sera Prognostics vs. Castle Biosciences | Sera Prognostics vs. Exagen Inc | Sera Prognostics vs. Tscan Therapeutics |
| Biodesix vs. Burning Rock Biotech | Biodesix vs. Neuronetics | Biodesix vs. DarioHealth Corp | Biodesix vs. Sera Prognostics |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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