Correlation Between Genovate Biotechnology and GrandTech
Can any of the company-specific risk be diversified away by investing in both Genovate Biotechnology and GrandTech 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 GrandTech 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 GrandTech CG Systems, you can compare the effects of market volatilities on Genovate Biotechnology and GrandTech 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 GrandTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovate Biotechnology and GrandTech.
Diversification Opportunities for Genovate Biotechnology and GrandTech
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genovate and GrandTech is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Genovate Biotechnology Co and GrandTech CG Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrandTech CG Systems 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 GrandTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrandTech CG Systems has no effect on the direction of Genovate Biotechnology i.e., Genovate Biotechnology and GrandTech go up and down completely randomly.
Pair Corralation between Genovate Biotechnology and GrandTech
Assuming the 90 days trading horizon Genovate Biotechnology Co is expected to generate 0.45 times more return on investment than GrandTech. However, Genovate Biotechnology Co is 2.23 times less risky than GrandTech. It trades about -0.31 of its potential returns per unit of risk. GrandTech CG Systems is currently generating about -0.27 per unit of risk. If you would invest 2,245 in Genovate Biotechnology Co on August 30, 2024 and sell it today you would lose (75.00) from holding Genovate Biotechnology Co or give up 3.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genovate Biotechnology Co vs. GrandTech CG Systems
Performance |
| Timeline |
| Genovate Biotechnology |
| GrandTech CG Systems |
Genovate Biotechnology and GrandTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovate Biotechnology and GrandTech
The main advantage of trading using opposite Genovate Biotechnology and GrandTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovate Biotechnology position performs unexpectedly, GrandTech 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 GrandTech will offset losses from the drop in GrandTech's long position.| Genovate Biotechnology vs. Medigen Vaccine Biologics | Genovate Biotechnology vs. OBI Pharma | Genovate Biotechnology vs. TaiMed Biologics | Genovate Biotechnology vs. Adimmune Corp |
| GrandTech vs. Jia Jie Biomedical | GrandTech vs. BRIM Biotechnology | GrandTech vs. Onyx Healthcare | GrandTech 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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