Correlation Between Genovis AB and Bonesupport Holding
Can any of the company-specific risk be diversified away by investing in both Genovis AB and Bonesupport Holding 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 Bonesupport Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovis AB and Bonesupport Holding AB, you can compare the effects of market volatilities on Genovis AB and Bonesupport Holding 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 Bonesupport Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and Bonesupport Holding.
Diversification Opportunities for Genovis AB and Bonesupport Holding
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genovis and Bonesupport is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and Bonesupport Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonesupport Holding 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 Bonesupport Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonesupport Holding has no effect on the direction of Genovis AB i.e., Genovis AB and Bonesupport Holding go up and down completely randomly.
Pair Corralation between Genovis AB and Bonesupport Holding
Assuming the 90 days trading horizon Genovis AB is expected to generate 2.39 times less return on investment than Bonesupport Holding. In addition to that, Genovis AB is 1.77 times more volatile than Bonesupport Holding AB. It trades about 0.02 of its total potential returns per unit of risk. Bonesupport Holding AB is currently generating about 0.1 per unit of volatility. If you would invest 22,640 in Bonesupport Holding AB on November 3, 2024 and sell it today you would earn a total of 12,200 from holding Bonesupport Holding AB or generate 53.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genovis AB vs. Bonesupport Holding AB
Performance |
| Timeline |
| Genovis AB |
| Bonesupport Holding |
Genovis AB and Bonesupport Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovis AB and Bonesupport Holding
The main advantage of trading using opposite Genovis AB and Bonesupport Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, Bonesupport Holding 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 Bonesupport Holding will offset losses from the drop in Bonesupport Holding's long position.| Genovis AB vs. Gaming Corps AB | Genovis AB vs. Zenicor Medical Systems | Genovis AB vs. MTI Investment SE | Genovis AB vs. Scandic Hotels Group |
| Bonesupport Holding vs. BioArctic AB | Bonesupport Holding vs. Camurus AB | Bonesupport Holding vs. Xvivo Perfusion AB | Bonesupport Holding vs. Surgical Science Sweden |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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