Correlation Between Genovate Biotechnology and Ibase Gaming
Can any of the company-specific risk be diversified away by investing in both Genovate Biotechnology and Ibase Gaming 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 Ibase Gaming 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 Ibase Gaming, you can compare the effects of market volatilities on Genovate Biotechnology and Ibase Gaming 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 Ibase Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovate Biotechnology and Ibase Gaming.
Diversification Opportunities for Genovate Biotechnology and Ibase Gaming
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genovate and Ibase is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Genovate Biotechnology Co and Ibase Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibase Gaming 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 Ibase Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibase Gaming has no effect on the direction of Genovate Biotechnology i.e., Genovate Biotechnology and Ibase Gaming go up and down completely randomly.
Pair Corralation between Genovate Biotechnology and Ibase Gaming
Assuming the 90 days trading horizon Genovate Biotechnology Co is expected to generate 2.19 times more return on investment than Ibase Gaming. However, Genovate Biotechnology is 2.19 times more volatile than Ibase Gaming. It trades about 0.01 of its potential returns per unit of risk. Ibase Gaming is currently generating about -0.03 per unit of risk. If you would invest 2,891 in Genovate Biotechnology Co on November 28, 2024 and sell it today you would lose (481.00) from holding Genovate Biotechnology Co or give up 16.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genovate Biotechnology Co vs. Ibase Gaming
Performance |
| Timeline |
| Genovate Biotechnology |
| Ibase Gaming |
Genovate Biotechnology and Ibase Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovate Biotechnology and Ibase Gaming
The main advantage of trading using opposite Genovate Biotechnology and Ibase Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovate Biotechnology position performs unexpectedly, Ibase Gaming 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 Ibase Gaming will offset losses from the drop in Ibase Gaming's long position.| Genovate Biotechnology vs. Johnson Health Tech | Genovate Biotechnology vs. Hunya Foods Co | Genovate Biotechnology vs. Sporton International | Genovate Biotechnology vs. Mechema Chemicals Int |
| Ibase Gaming vs. Emerging Display Technologies | Ibase Gaming vs. Lanner Electronics | Ibase Gaming vs. King Chou Marine | Ibase Gaming vs. Information Technology Total |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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