Correlation Between ChitogenX and Geron
Can any of the company-specific risk be diversified away by investing in both ChitogenX and Geron 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 ChitogenX and Geron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChitogenX and Geron, you can compare the effects of market volatilities on ChitogenX and Geron 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 ChitogenX with a short position of Geron. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChitogenX and Geron.
Diversification Opportunities for ChitogenX and Geron
Poor diversification
The 3 months correlation between ChitogenX and Geron is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding ChitogenX and Geron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron and ChitogenX 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 ChitogenX are associated (or correlated) with Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of ChitogenX i.e., ChitogenX and Geron go up and down completely randomly.
Pair Corralation between ChitogenX and Geron
Assuming the 90 days horizon ChitogenX is expected to under-perform the Geron. But the otc stock apears to be less risky and, when comparing its historical volatility, ChitogenX is 3.24 times less risky than Geron. The otc stock trades about -0.12 of its potential returns per unit of risk. The Geron is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 411.00 in Geron on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Geron or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ChitogenX vs. Geron
Performance |
| Timeline |
| ChitogenX |
| Geron |
ChitogenX and Geron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChitogenX and Geron
The main advantage of trading using opposite ChitogenX and Geron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChitogenX position performs unexpectedly, Geron 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 Geron will offset losses from the drop in Geron's long position.| ChitogenX vs. Advanced Proteome Therapeutics | ChitogenX vs. Cellectis SA | ChitogenX vs. Biotron Limited | ChitogenX vs. biOasis Technologies |
| Geron vs. Tff Pharmaceuticals | Geron vs. Eliem Therapeutics | Geron vs. Inhibrx | Geron vs. Enliven Therapeutics |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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