Correlation Between GenMont Biotech and Excelsior Medical
Can any of the company-specific risk be diversified away by investing in both GenMont Biotech and Excelsior Medical 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 GenMont Biotech and Excelsior Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GenMont Biotech and Excelsior Medical Co, you can compare the effects of market volatilities on GenMont Biotech and Excelsior Medical 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 GenMont Biotech with a short position of Excelsior Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GenMont Biotech and Excelsior Medical.
Diversification Opportunities for GenMont Biotech and Excelsior Medical
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GenMont and Excelsior is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding GenMont Biotech and Excelsior Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelsior Medical and GenMont Biotech 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 GenMont Biotech are associated (or correlated) with Excelsior Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelsior Medical has no effect on the direction of GenMont Biotech i.e., GenMont Biotech and Excelsior Medical go up and down completely randomly.
Pair Corralation between GenMont Biotech and Excelsior Medical
Assuming the 90 days trading horizon GenMont Biotech is expected to under-perform the Excelsior Medical. But the stock apears to be less risky and, when comparing its historical volatility, GenMont Biotech is 1.06 times less risky than Excelsior Medical. The stock trades about -0.07 of its potential returns per unit of risk. The Excelsior Medical Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 9,200 in Excelsior Medical Co on August 31, 2024 and sell it today you would lose (530.00) from holding Excelsior Medical Co or give up 5.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
GenMont Biotech vs. Excelsior Medical Co
Performance |
| Timeline |
| GenMont Biotech |
| Excelsior Medical |
GenMont Biotech and Excelsior Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GenMont Biotech and Excelsior Medical
The main advantage of trading using opposite GenMont Biotech and Excelsior Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GenMont Biotech position performs unexpectedly, Excelsior Medical 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 Excelsior Medical will offset losses from the drop in Excelsior Medical's long position.| GenMont Biotech vs. Taiwan Semiconductor Manufacturing | GenMont Biotech vs. Hon Hai Precision | GenMont Biotech vs. MediaTek | GenMont Biotech vs. Chunghwa Telecom Co |
| Excelsior Medical vs. Wellell | Excelsior Medical vs. YungShin Global Holding | Excelsior Medical vs. Abnova Taiwan Corp | Excelsior Medical vs. Phytohealth Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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