Correlation Between Seegene and Genexine
Can any of the company-specific risk be diversified away by investing in both Seegene and Genexine 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 Seegene and Genexine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seegene and Genexine, you can compare the effects of market volatilities on Seegene and Genexine 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 Seegene with a short position of Genexine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seegene and Genexine.
Diversification Opportunities for Seegene and Genexine
Very good diversification
The 3 months correlation between Seegene and Genexine is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Seegene and Genexine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genexine and Seegene 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 Seegene are associated (or correlated) with Genexine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genexine has no effect on the direction of Seegene i.e., Seegene and Genexine go up and down completely randomly.
Pair Corralation between Seegene and Genexine
Assuming the 90 days trading horizon Seegene is expected to generate 0.62 times more return on investment than Genexine. However, Seegene is 1.61 times less risky than Genexine. It trades about -0.91 of its potential returns per unit of risk. Genexine is currently generating about -0.76 per unit of risk. If you would invest 2,785,000 in Seegene on November 6, 2024 and sell it today you would lose (470,000) from holding Seegene or give up 16.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seegene vs. Genexine
Performance |
| Timeline |
| Seegene |
| Genexine |
Seegene and Genexine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seegene and Genexine
The main advantage of trading using opposite Seegene and Genexine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seegene position performs unexpectedly, Genexine 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 Genexine will offset losses from the drop in Genexine's long position.| Seegene vs. Samsung Electronics Co | Seegene vs. Samsung Electronics Co | Seegene vs. KB Financial Group | Seegene vs. Shinhan Financial Group |
| Genexine vs. Samsung Electronics Co | Genexine vs. Samsung Electronics Co | Genexine vs. KB Financial Group | Genexine vs. Shinhan Financial Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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