Correlation Between Amer Bio and Genetron Holdings
Can any of the company-specific risk be diversified away by investing in both Amer Bio and Genetron Holdings 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 Amer Bio and Genetron Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Bio Medica and Genetron Holdings, you can compare the effects of market volatilities on Amer Bio and Genetron Holdings 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 Amer Bio with a short position of Genetron Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Bio and Genetron Holdings.
Diversification Opportunities for Amer Bio and Genetron Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amer and Genetron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amer Bio Medica and Genetron Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genetron Holdings and Amer Bio 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 Amer Bio Medica are associated (or correlated) with Genetron Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genetron Holdings has no effect on the direction of Amer Bio i.e., Amer Bio and Genetron Holdings go up and down completely randomly.
Pair Corralation between Amer Bio and Genetron Holdings
If you would invest 94.00 in Genetron Holdings on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Genetron Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amer Bio Medica vs. Genetron Holdings
Performance |
| Timeline |
| Amer Bio Medica |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Genetron Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amer Bio and Genetron Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Bio and Genetron Holdings
The main advantage of trading using opposite Amer Bio and Genetron Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Bio position performs unexpectedly, Genetron Holdings 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 Genetron Holdings will offset losses from the drop in Genetron Holdings' long position.The idea behind Amer Bio Medica and Genetron Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Genetron Holdings vs. Sera Prognostics | Genetron Holdings vs. DarioHealth Corp | Genetron Holdings vs. Biodesix | Genetron Holdings vs. Aclaris Therapeutics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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