Correlation Between Genesis Healthcare and BioAge Labs,
Can any of the company-specific risk be diversified away by investing in both Genesis Healthcare and BioAge Labs, 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 Genesis Healthcare and BioAge Labs, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genesis Healthcare and BioAge Labs,, you can compare the effects of market volatilities on Genesis Healthcare and BioAge Labs, 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 Genesis Healthcare with a short position of BioAge Labs,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesis Healthcare and BioAge Labs,.
Diversification Opportunities for Genesis Healthcare and BioAge Labs,
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genesis and BioAge is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Genesis Healthcare and BioAge Labs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAge Labs, and Genesis Healthcare 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 Genesis Healthcare are associated (or correlated) with BioAge Labs,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAge Labs, has no effect on the direction of Genesis Healthcare i.e., Genesis Healthcare and BioAge Labs, go up and down completely randomly.
Pair Corralation between Genesis Healthcare and BioAge Labs,
Given the investment horizon of 90 days Genesis Healthcare is expected to generate 1.3 times less return on investment than BioAge Labs,. But when comparing it to its historical volatility, Genesis Healthcare is 12.21 times less risky than BioAge Labs,. It trades about 0.43 of its potential returns per unit of risk. BioAge Labs, is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,831 in BioAge Labs, on August 26, 2024 and sell it today you would earn a total of 83.00 from holding BioAge Labs, or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.56% |
| Values | Daily Returns |
Genesis Healthcare vs. BioAge Labs,
Performance |
| Timeline |
| Genesis Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BioAge Labs, |
Genesis Healthcare and BioAge Labs, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genesis Healthcare and BioAge Labs,
The main advantage of trading using opposite Genesis Healthcare and BioAge Labs, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genesis Healthcare position performs unexpectedly, BioAge Labs, 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 BioAge Labs, will offset losses from the drop in BioAge Labs,'s long position.| Genesis Healthcare vs. Univec Inc | Genesis Healthcare vs. Ethema Health Corp | Genesis Healthcare vs. IMAC Holdings | Genesis Healthcare vs. The Ensign Group |
| BioAge Labs, vs. Sea | BioAge Labs, vs. FactSet Research Systems | BioAge Labs, vs. SunOpta | BioAge Labs, vs. Getty Images Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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