Correlation Between Generation Bio and Cocrystal Pharma
Can any of the company-specific risk be diversified away by investing in both Generation Bio and Cocrystal Pharma 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 Generation Bio and Cocrystal Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generation Bio Co and Cocrystal Pharma, you can compare the effects of market volatilities on Generation Bio and Cocrystal Pharma 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 Generation Bio with a short position of Cocrystal Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Bio and Cocrystal Pharma.
Diversification Opportunities for Generation Bio and Cocrystal Pharma
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Generation and Cocrystal is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Generation Bio Co and Cocrystal Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cocrystal Pharma and Generation Bio 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 Generation Bio Co are associated (or correlated) with Cocrystal Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cocrystal Pharma has no effect on the direction of Generation Bio i.e., Generation Bio and Cocrystal Pharma go up and down completely randomly.
Pair Corralation between Generation Bio and Cocrystal Pharma
Given the investment horizon of 90 days Generation Bio is expected to generate 9.25 times less return on investment than Cocrystal Pharma. In addition to that, Generation Bio is 1.54 times more volatile than Cocrystal Pharma. It trades about 0.0 of its total potential returns per unit of risk. Cocrystal Pharma is currently generating about 0.01 per unit of volatility. If you would invest 244.00 in Cocrystal Pharma on September 4, 2024 and sell it today you would lose (37.00) from holding Cocrystal Pharma or give up 15.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Generation Bio Co vs. Cocrystal Pharma
Performance |
| Timeline |
| Generation Bio |
| Cocrystal Pharma |
Generation Bio and Cocrystal Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generation Bio and Cocrystal Pharma
The main advantage of trading using opposite Generation Bio and Cocrystal Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generation Bio position performs unexpectedly, Cocrystal Pharma 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 Cocrystal Pharma will offset losses from the drop in Cocrystal Pharma's long position.| Generation Bio vs. Monte Rosa Therapeutics | Generation Bio vs. Nkarta Inc | Generation Bio vs. Lyell Immunopharma | Generation Bio vs. Sana Biotechnology |
| Cocrystal Pharma vs. RenovoRx | Cocrystal Pharma vs. Tempest Therapeutics | Cocrystal Pharma vs. Ikena Oncology | Cocrystal Pharma vs. Moleculin Biotech |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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