Correlation Between Genovis AB and Boule Diagnostics
Can any of the company-specific risk be diversified away by investing in both Genovis AB and Boule Diagnostics 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 Boule Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovis AB and Boule Diagnostics AB, you can compare the effects of market volatilities on Genovis AB and Boule Diagnostics 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 Boule Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and Boule Diagnostics.
Diversification Opportunities for Genovis AB and Boule Diagnostics
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genovis and Boule is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and Boule Diagnostics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boule Diagnostics 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 Boule Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boule Diagnostics has no effect on the direction of Genovis AB i.e., Genovis AB and Boule Diagnostics go up and down completely randomly.
Pair Corralation between Genovis AB and Boule Diagnostics
Assuming the 90 days trading horizon Genovis AB is expected to generate 1.51 times more return on investment than Boule Diagnostics. However, Genovis AB is 1.51 times more volatile than Boule Diagnostics AB. It trades about 0.18 of its potential returns per unit of risk. Boule Diagnostics AB is currently generating about 0.05 per unit of risk. If you would invest 2,210 in Genovis AB on August 29, 2024 and sell it today you would earn a total of 530.00 from holding Genovis AB or generate 23.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genovis AB vs. Boule Diagnostics AB
Performance |
| Timeline |
| Genovis AB |
| Boule Diagnostics |
Genovis AB and Boule Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovis AB and Boule Diagnostics
The main advantage of trading using opposite Genovis AB and Boule Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, Boule Diagnostics 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 Boule Diagnostics will offset losses from the drop in Boule Diagnostics' long position.| Genovis AB vs. Flexion Mobile PLC | Genovis AB vs. Norion Bank | Genovis AB vs. Lundin Mining | Genovis AB vs. eEducation Albert AB |
| Boule Diagnostics vs. GomSpace Group AB | Boule Diagnostics vs. Hansa Biopharma AB | Boule Diagnostics vs. Zealand Pharma AS | Boule Diagnostics vs. BioInvent International 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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