Correlation Between Genovate Biotechnology and Avalue Technology
Can any of the company-specific risk be diversified away by investing in both Genovate Biotechnology and Avalue 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 Avalue 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 Avalue Technology, you can compare the effects of market volatilities on Genovate Biotechnology and Avalue 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 Avalue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovate Biotechnology and Avalue Technology.
Diversification Opportunities for Genovate Biotechnology and Avalue Technology
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genovate and Avalue is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Genovate Biotechnology Co and Avalue Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avalue 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 Avalue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avalue Technology has no effect on the direction of Genovate Biotechnology i.e., Genovate Biotechnology and Avalue Technology go up and down completely randomly.
Pair Corralation between Genovate Biotechnology and Avalue Technology
Assuming the 90 days trading horizon Genovate Biotechnology Co is expected to generate 0.51 times more return on investment than Avalue Technology. However, Genovate Biotechnology Co is 1.98 times less risky than Avalue Technology. It trades about -0.07 of its potential returns per unit of risk. Avalue Technology is currently generating about -0.05 per unit of risk. If you would invest 2,265 in Genovate Biotechnology Co on August 30, 2024 and sell it today you would lose (90.00) from holding Genovate Biotechnology Co or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genovate Biotechnology Co vs. Avalue Technology
Performance |
| Timeline |
| Genovate Biotechnology |
| Avalue Technology |
Genovate Biotechnology and Avalue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovate Biotechnology and Avalue Technology
The main advantage of trading using opposite Genovate Biotechnology and Avalue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovate Biotechnology position performs unexpectedly, Avalue 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 Avalue Technology will offset losses from the drop in Avalue Technology's long position.| Genovate Biotechnology vs. Kings Town Bank | Genovate Biotechnology vs. Shinkong Insurance Co | Genovate Biotechnology vs. First Insurance Co | Genovate Biotechnology vs. Bank of Kaohsiung |
| Avalue Technology vs. Qisda Corp | Avalue Technology vs. Quanta Computer | Avalue Technology vs. Coretronic | Avalue Technology vs. Wistron 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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