Correlation Between Genovate Biotechnology and Aker Technology
Can any of the company-specific risk be diversified away by investing in both Genovate Biotechnology and Aker 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 Aker 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 Aker Technology Co, you can compare the effects of market volatilities on Genovate Biotechnology and Aker 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 Aker Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovate Biotechnology and Aker Technology.
Diversification Opportunities for Genovate Biotechnology and Aker Technology
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genovate and Aker is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Genovate Biotechnology Co and Aker Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker 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 Aker Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Technology has no effect on the direction of Genovate Biotechnology i.e., Genovate Biotechnology and Aker Technology go up and down completely randomly.
Pair Corralation between Genovate Biotechnology and Aker Technology
Assuming the 90 days trading horizon Genovate Biotechnology Co is expected to generate 1.21 times more return on investment than Aker Technology. However, Genovate Biotechnology is 1.21 times more volatile than Aker Technology Co. It trades about 0.14 of its potential returns per unit of risk. Aker Technology Co is currently generating about 0.0 per unit of risk. If you would invest 2,090 in Genovate Biotechnology Co on November 30, 2024 and sell it today you would earn a total of 270.00 from holding Genovate Biotechnology Co or generate 12.92% 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. Aker Technology Co
Performance |
| Timeline |
| Genovate Biotechnology |
| Aker Technology |
Genovate Biotechnology and Aker Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovate Biotechnology and Aker Technology
The main advantage of trading using opposite Genovate Biotechnology and Aker Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovate Biotechnology position performs unexpectedly, Aker 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 Aker Technology will offset losses from the drop in Aker Technology's long position.| Genovate Biotechnology vs. First Hotel Co | Genovate Biotechnology vs. Mega Financial Holding | Genovate Biotechnology vs. Pontex Polyblend CoLtd | Genovate Biotechnology vs. ESUN Financial Holding |
| Aker Technology vs. International CSRC Investment | Aker Technology vs. Genovate Biotechnology Co | Aker Technology vs. ANJI Technology Co | Aker Technology vs. Tradetool Auto 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |