Correlation Between Genovis AB and AVTECH Sweden
Can any of the company-specific risk be diversified away by investing in both Genovis AB and AVTECH Sweden 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 AVTECH Sweden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovis AB and AVTECH Sweden AB, you can compare the effects of market volatilities on Genovis AB and AVTECH Sweden 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 AVTECH Sweden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and AVTECH Sweden.
Diversification Opportunities for Genovis AB and AVTECH Sweden
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genovis and AVTECH is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and AVTECH Sweden AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVTECH Sweden 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 AVTECH Sweden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVTECH Sweden AB has no effect on the direction of Genovis AB i.e., Genovis AB and AVTECH Sweden go up and down completely randomly.
Pair Corralation between Genovis AB and AVTECH Sweden
Assuming the 90 days trading horizon Genovis AB is expected to generate 0.69 times more return on investment than AVTECH Sweden. However, Genovis AB is 1.45 times less risky than AVTECH Sweden. It trades about -0.08 of its potential returns per unit of risk. AVTECH Sweden AB is currently generating about -0.1 per unit of risk. If you would invest 2,675 in Genovis AB on September 12, 2024 and sell it today you would lose (145.00) from holding Genovis AB or give up 5.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genovis AB vs. AVTECH Sweden AB
Performance |
| Timeline |
| Genovis AB |
| AVTECH Sweden AB |
Genovis AB and AVTECH Sweden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovis AB and AVTECH Sweden
The main advantage of trading using opposite Genovis AB and AVTECH Sweden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, AVTECH Sweden 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 AVTECH Sweden will offset losses from the drop in AVTECH Sweden's long position.| Genovis AB vs. AVTECH Sweden AB | Genovis AB vs. Catena Media plc | Genovis AB vs. Nordic Asia Investment | Genovis AB vs. Fractal Gaming Group |
| AVTECH Sweden vs. AroCell AB | AVTECH Sweden vs. aXichem AB | AVTECH Sweden vs. Gaming Corps AB | AVTECH Sweden vs. Cantargia 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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