Correlation Between Genovis AB and Ascelia Pharma
Can any of the company-specific risk be diversified away by investing in both Genovis AB and Ascelia 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 Genovis AB and Ascelia Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovis AB and Ascelia Pharma AB, you can compare the effects of market volatilities on Genovis AB and Ascelia 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 Genovis AB with a short position of Ascelia Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and Ascelia Pharma.
Diversification Opportunities for Genovis AB and Ascelia Pharma
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Genovis and Ascelia is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and Ascelia Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascelia Pharma AB and Genovis AB 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 Genovis AB are associated (or correlated) with Ascelia Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascelia Pharma AB has no effect on the direction of Genovis AB i.e., Genovis AB and Ascelia Pharma go up and down completely randomly.
Pair Corralation between Genovis AB and Ascelia Pharma
Assuming the 90 days trading horizon Genovis AB is expected to generate 1.35 times less return on investment than Ascelia Pharma. In addition to that, Genovis AB is 1.01 times more volatile than Ascelia Pharma AB. It trades about 0.03 of its total potential returns per unit of risk. Ascelia Pharma AB is currently generating about 0.04 per unit of volatility. If you would invest 268.00 in Ascelia Pharma AB on September 4, 2024 and sell it today you would earn a total of 18.00 from holding Ascelia Pharma AB or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genovis AB vs. Ascelia Pharma AB
Performance |
| Timeline |
| Genovis AB |
| Ascelia Pharma AB |
Genovis AB and Ascelia Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovis AB and Ascelia Pharma
The main advantage of trading using opposite Genovis AB and Ascelia Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, Ascelia 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 Ascelia Pharma will offset losses from the drop in Ascelia Pharma's long position.| Genovis AB vs. Maven Wireless Sweden | Genovis AB vs. 24SevenOffice Scandinavia AB | Genovis AB vs. eEducation Albert AB | Genovis AB vs. Avanza Bank Holding |
| Ascelia Pharma vs. Hansa Biopharma AB | Ascelia Pharma vs. Cantargia AB | Ascelia Pharma vs. Saniona AB | Ascelia Pharma vs. BioArctic 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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