Correlation Between Spineguard and Gensight Biologics
Can any of the company-specific risk be diversified away by investing in both Spineguard 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 Spineguard and Gensight Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spineguard and Gensight Biologics SA, you can compare the effects of market volatilities on Spineguard 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 Spineguard with a short position of Gensight Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spineguard and Gensight Biologics.
Diversification Opportunities for Spineguard and Gensight Biologics
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Spineguard and Gensight is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Spineguard and Gensight Biologics SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gensight Biologics and Spineguard 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 Spineguard 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 Spineguard i.e., Spineguard and Gensight Biologics go up and down completely randomly.
Pair Corralation between Spineguard and Gensight Biologics
Assuming the 90 days trading horizon Spineguard is expected to generate 0.95 times more return on investment than Gensight Biologics. However, Spineguard is 1.05 times less risky than Gensight Biologics. It trades about 0.06 of its potential returns per unit of risk. Gensight Biologics SA is currently generating about 0.03 per unit of risk. If you would invest 22.00 in Spineguard on September 13, 2024 and sell it today you would earn a total of 1.00 from holding Spineguard or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spineguard vs. Gensight Biologics SA
Performance |
| Timeline |
| Spineguard |
| Gensight Biologics |
Spineguard and Gensight Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spineguard and Gensight Biologics
The main advantage of trading using opposite Spineguard and Gensight Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spineguard 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.| Spineguard vs. Biophytis SA | Spineguard vs. Spineway | Spineguard vs. Novacyt | Spineguard vs. Quantum Genomics 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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