Correlation Between CellaVision and Genovis AB
Can any of the company-specific risk be diversified away by investing in both CellaVision and Genovis AB 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 CellaVision and Genovis AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CellaVision AB and Genovis AB, you can compare the effects of market volatilities on CellaVision and Genovis AB 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 CellaVision with a short position of Genovis AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of CellaVision and Genovis AB.
Diversification Opportunities for CellaVision and Genovis AB
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CellaVision and Genovis is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding CellaVision AB and Genovis AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genovis AB and CellaVision 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 CellaVision AB are associated (or correlated) with Genovis AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genovis AB has no effect on the direction of CellaVision i.e., CellaVision and Genovis AB go up and down completely randomly.
Pair Corralation between CellaVision and Genovis AB
Assuming the 90 days trading horizon CellaVision AB is expected to under-perform the Genovis AB. But the stock apears to be less risky and, when comparing its historical volatility, CellaVision AB is 2.92 times less risky than Genovis AB. The stock trades about -0.36 of its potential returns per unit of risk. The Genovis AB is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,210 in Genovis AB on August 29, 2024 and sell it today you would earn a total of 530.00 from holding Genovis AB or generate 23.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CellaVision AB vs. Genovis AB
Performance |
| Timeline |
| CellaVision AB |
| Genovis AB |
CellaVision and Genovis AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CellaVision and Genovis AB
The main advantage of trading using opposite CellaVision and Genovis AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CellaVision position performs unexpectedly, Genovis AB 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 Genovis AB will offset losses from the drop in Genovis AB's long position.| CellaVision vs. GomSpace Group AB | CellaVision vs. Hansa Biopharma AB | CellaVision vs. Zealand Pharma AS | CellaVision vs. BioInvent International AB |
| Genovis AB vs. Flexion Mobile PLC | Genovis AB vs. Norion Bank | Genovis AB vs. Lundin Mining | Genovis AB vs. eEducation Albert AB |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |