Correlation Between Ascletis Pharma and Genocea Biosciences
Can any of the company-specific risk be diversified away by investing in both Ascletis Pharma and Genocea Biosciences 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 Ascletis Pharma and Genocea Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascletis Pharma and Genocea Biosciences, you can compare the effects of market volatilities on Ascletis Pharma and Genocea Biosciences 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 Ascletis Pharma with a short position of Genocea Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascletis Pharma and Genocea Biosciences.
Diversification Opportunities for Ascletis Pharma and Genocea Biosciences
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ascletis and Genocea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ascletis Pharma and Genocea Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genocea Biosciences and Ascletis Pharma 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 Ascletis Pharma are associated (or correlated) with Genocea Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genocea Biosciences has no effect on the direction of Ascletis Pharma i.e., Ascletis Pharma and Genocea Biosciences go up and down completely randomly.
Pair Corralation between Ascletis Pharma and Genocea Biosciences
If you would invest (100.00) in Genocea Biosciences on October 21, 2024 and sell it today you would earn a total of 100.00 from holding Genocea Biosciences or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ascletis Pharma vs. Genocea Biosciences
Performance |
| Timeline |
| Ascletis Pharma |
| Genocea Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ascletis Pharma and Genocea Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascletis Pharma and Genocea Biosciences
The main advantage of trading using opposite Ascletis Pharma and Genocea Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascletis Pharma position performs unexpectedly, Genocea Biosciences 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 Genocea Biosciences will offset losses from the drop in Genocea Biosciences' long position.The idea behind Ascletis Pharma and Genocea Biosciences 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.| Genocea Biosciences vs. Kingdee International Software | Genocea Biosciences vs. Space Communication | Genocea Biosciences vs. BK Technologies | Genocea Biosciences vs. Sapiens International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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