Correlation Between British Amer and Genscript Biotech
Can any of the company-specific risk be diversified away by investing in both British Amer and Genscript Biotech 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 British Amer and Genscript Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between British American Tobacco and Genscript Biotech, you can compare the effects of market volatilities on British Amer and Genscript Biotech 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 British Amer with a short position of Genscript Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Amer and Genscript Biotech.
Diversification Opportunities for British Amer and Genscript Biotech
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between British and Genscript is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding British American Tobacco and Genscript Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genscript Biotech and British Amer 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 British American Tobacco are associated (or correlated) with Genscript Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genscript Biotech has no effect on the direction of British Amer i.e., British Amer and Genscript Biotech go up and down completely randomly.
Pair Corralation between British Amer and Genscript Biotech
Considering the 90-day investment horizon British American Tobacco is expected to generate 0.25 times more return on investment than Genscript Biotech. However, British American Tobacco is 3.99 times less risky than Genscript Biotech. It trades about 0.16 of its potential returns per unit of risk. Genscript Biotech is currently generating about 0.0 per unit of risk. If you would invest 3,421 in British American Tobacco on October 26, 2024 and sell it today you would earn a total of 284.00 from holding British American Tobacco or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.16% |
| Values | Daily Returns |
British American Tobacco vs. Genscript Biotech
Performance |
| Timeline |
| British American Tobacco |
| Genscript Biotech |
British Amer and Genscript Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Amer and Genscript Biotech
The main advantage of trading using opposite British Amer and Genscript Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Amer position performs unexpectedly, Genscript Biotech 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 Genscript Biotech will offset losses from the drop in Genscript Biotech's long position.| British Amer vs. Philip Morris International | British Amer vs. Universal | British Amer vs. Imperial Brands PLC | British Amer vs. Altria Group |
| Genscript Biotech vs. Telix Pharmaceuticals Limited | Genscript Biotech vs. Keros Therapeutics | Genscript Biotech vs. Zentalis Pharmaceuticals Llc | Genscript Biotech vs. Innovent Biologics |
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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