Correlation Between Blockchain Group and Gensight Biologics
Can any of the company-specific risk be diversified away by investing in both Blockchain Group 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 Blockchain Group and Gensight Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blockchain Group SA and Gensight Biologics SA, you can compare the effects of market volatilities on Blockchain Group 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 Blockchain Group with a short position of Gensight Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockchain Group and Gensight Biologics.
Diversification Opportunities for Blockchain Group and Gensight Biologics
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blockchain and Gensight is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Blockchain Group 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 Blockchain Group 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 Blockchain Group 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 Blockchain Group i.e., Blockchain Group and Gensight Biologics go up and down completely randomly.
Pair Corralation between Blockchain Group and Gensight Biologics
Assuming the 90 days trading horizon Blockchain Group SA is expected to generate 0.94 times more return on investment than Gensight Biologics. However, Blockchain Group SA is 1.07 times less risky than Gensight Biologics. It trades about 0.05 of its potential returns per unit of risk. Gensight Biologics SA is currently generating about 0.0 per unit of risk. If you would invest 17.00 in Blockchain Group SA on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Blockchain Group SA or generate 64.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blockchain Group SA vs. Gensight Biologics SA
Performance |
| Timeline |
| Blockchain Group |
| Gensight Biologics |
Blockchain Group and Gensight Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blockchain Group and Gensight Biologics
The main advantage of trading using opposite Blockchain Group and Gensight Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockchain Group 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.| Blockchain Group vs. Gaussin | Blockchain Group vs. Drone Volt SA | Blockchain Group vs. Amoeba SA | Blockchain Group vs. Gensight Biologics SA |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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