Correlation Between Sensorion and Gensight Biologics
Can any of the company-specific risk be diversified away by investing in both Sensorion and Gensight Biologics 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 Sensorion and Gensight Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sensorion SA and Gensight Biologics SA, you can compare the effects of market volatilities on Sensorion and Gensight Biologics 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 Sensorion with a short position of Gensight Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensorion and Gensight Biologics.
Diversification Opportunities for Sensorion and Gensight Biologics
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sensorion and Gensight is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sensorion SA and Gensight Biologics SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gensight Biologics and Sensorion 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 Sensorion SA are associated (or correlated) with Gensight Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gensight Biologics has no effect on the direction of Sensorion i.e., Sensorion and Gensight Biologics go up and down completely randomly.
Pair Corralation between Sensorion and Gensight Biologics
Assuming the 90 days trading horizon Sensorion SA is expected to generate 0.62 times more return on investment than Gensight Biologics. However, Sensorion SA is 1.61 times less risky than Gensight Biologics. It trades about 0.0 of its potential returns per unit of risk. Gensight Biologics SA is currently generating about -0.02 per unit of risk. If you would invest 74.00 in Sensorion SA on October 12, 2024 and sell it today you would lose (4.00) from holding Sensorion SA or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sensorion SA vs. Gensight Biologics SA
Performance |
| Timeline |
| Sensorion SA |
| Gensight Biologics |
Sensorion and Gensight Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sensorion and Gensight Biologics
The main advantage of trading using opposite Sensorion and Gensight Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensorion position performs unexpectedly, Gensight Biologics 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 Gensight Biologics will offset losses from the drop in Gensight Biologics' long position.| Sensorion vs. Poxel SA | Sensorion vs. Quantum Genomics SA | Sensorion vs. Biophytis SA | Sensorion vs. Gensight Biologics SA |
| Gensight Biologics vs. DBV Technologies SA | Gensight Biologics vs. Inventiva SA | Gensight Biologics vs. Quantum Genomics SA | Gensight Biologics vs. Abivax SA |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |