Correlation Between C Rad and Genovis AB
Can any of the company-specific risk be diversified away by investing in both C Rad 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 C Rad and Genovis AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C Rad AB and Genovis AB, you can compare the effects of market volatilities on C Rad 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 C Rad with a short position of Genovis AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of C Rad and Genovis AB.
Diversification Opportunities for C Rad and Genovis AB
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CRAD-B and Genovis is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding C Rad AB and Genovis AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genovis AB and C Rad 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 C Rad 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 C Rad i.e., C Rad and Genovis AB go up and down completely randomly.
Pair Corralation between C Rad and Genovis AB
Assuming the 90 days trading horizon C Rad is expected to generate 9.64 times less return on investment than Genovis AB. But when comparing it to its historical volatility, C Rad AB is 3.48 times less risky than Genovis AB. It trades about 0.06 of its potential returns per unit of risk. Genovis AB is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,175 in Genovis AB on September 1, 2024 and sell it today you would earn a total of 450.00 from holding Genovis AB or generate 20.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
C Rad AB vs. Genovis AB
Performance |
| Timeline |
| C Rad AB |
| Genovis AB |
C Rad and Genovis AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C Rad and Genovis AB
The main advantage of trading using opposite C Rad and Genovis AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C Rad 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.| C Rad vs. CellaVision AB | C Rad vs. Biotage AB | C Rad vs. Boule Diagnostics AB | C Rad vs. RaySearch Laboratories AB |
| Genovis AB vs. Skandinaviska Enskilda Banken | Genovis AB vs. Beowulf Mining PLC | Genovis AB vs. White Pearl Technology | Genovis AB vs. Nordic Asia Investment |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |