Correlation Between Genovate Biotechnology and Auras Technology
Can any of the company-specific risk be diversified away by investing in both Genovate Biotechnology and Auras Technology 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 Genovate Biotechnology and Auras Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovate Biotechnology Co and Auras Technology Co, you can compare the effects of market volatilities on Genovate Biotechnology and Auras Technology 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 Genovate Biotechnology with a short position of Auras Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovate Biotechnology and Auras Technology.
Diversification Opportunities for Genovate Biotechnology and Auras Technology
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genovate and Auras is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Genovate Biotechnology Co and Auras Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auras Technology and Genovate Biotechnology 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 Genovate Biotechnology Co are associated (or correlated) with Auras Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auras Technology has no effect on the direction of Genovate Biotechnology i.e., Genovate Biotechnology and Auras Technology go up and down completely randomly.
Pair Corralation between Genovate Biotechnology and Auras Technology
Assuming the 90 days trading horizon Genovate Biotechnology Co is expected to generate 0.47 times more return on investment than Auras Technology. However, Genovate Biotechnology Co is 2.13 times less risky than Auras Technology. It trades about 0.04 of its potential returns per unit of risk. Auras Technology Co is currently generating about 0.01 per unit of risk. If you would invest 2,218 in Genovate Biotechnology Co on October 26, 2024 and sell it today you would earn a total of 172.00 from holding Genovate Biotechnology Co or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genovate Biotechnology Co vs. Auras Technology Co
Performance |
| Timeline |
| Genovate Biotechnology |
| Auras Technology |
Genovate Biotechnology and Auras Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovate Biotechnology and Auras Technology
The main advantage of trading using opposite Genovate Biotechnology and Auras Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovate Biotechnology position performs unexpectedly, Auras Technology 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 Auras Technology will offset losses from the drop in Auras Technology's long position.| Genovate Biotechnology vs. Ching Feng Home | Genovate Biotechnology vs. RiTdisplay Corp | Genovate Biotechnology vs. Winstek Semiconductor Co | Genovate Biotechnology vs. Taiwan Semiconductor Co |
| Auras Technology vs. Loop Telecommunication International | Auras Technology vs. U Media Communications | Auras Technology vs. Arbor Technology | Auras Technology vs. Genovate Biotechnology Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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