Correlation Between Skillz Platform and Bionano Genomics

Can any of the company-specific risk be diversified away by investing in both Skillz Platform and Bionano Genomics 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 Skillz Platform and Bionano Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Skillz Platform and Bionano Genomics

-0.56

Correlation Coefficient

Skillz Platform  Bionano Genomics

Excellent diversification

The 3 months correlation between Skillz and Bionano is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Skillz Platform and Bionano Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionano Genomics and Skillz Platform 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 Skillz Platform are associated (or correlated) with Bionano Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionano Genomics has no effect on the direction of Skillz Platform i.e., Skillz Platform and Bionano Genomics go up and down completely randomly.

Pair Corralation between Skillz Platform and Bionano Genomics

Given the investment horizon of 90 days Skillz Platform is expected to generate 1.74 times more return on investment than Bionano Genomics. However, Skillz Platform is 1.74 times more volatile than Bionano Genomics. It trades about 0.13 of its potential returns per unit of risk. Bionano Genomics is currently generating about -0.12 per unit of risk. If you would invest  518.00  in Skillz Platform on May 7, 2025 and sell it today you would earn a total of  174.00  from holding Skillz Platform or generate 33.59% return on investment over 90 days.

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

Skillz Platform  vs.  Bionano Genomics

Skillz Platform

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Skillz Platform are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Skillz Platform showed solid returns over the last few months and may actually be approaching a breakup point.

Bionano Genomics

Risk-Adjusted Performance

Weakest

Over the last 90 days Bionano Genomics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Skillz Platform and Bionano Genomics

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

The idea behind Skillz Platform and Bionano Genomics 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.