Correlation Between Genovis AB and CellaVision
Can any of the company-specific risk be diversified away by investing in both Genovis AB and CellaVision 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 CellaVision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovis AB and CellaVision AB, you can compare the effects of market volatilities on Genovis AB and CellaVision 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 CellaVision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and CellaVision.
Diversification Opportunities for Genovis AB and CellaVision
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genovis and CellaVision is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and CellaVision AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CellaVision 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 CellaVision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CellaVision AB has no effect on the direction of Genovis AB i.e., Genovis AB and CellaVision go up and down completely randomly.
Pair Corralation between Genovis AB and CellaVision
Assuming the 90 days trading horizon Genovis AB is expected to generate 3.06 times more return on investment than CellaVision. However, Genovis AB is 3.06 times more volatile than CellaVision AB. It trades about 0.16 of its potential returns per unit of risk. CellaVision AB is currently generating about -0.13 per unit of risk. If you would invest 2,175 in Genovis AB on September 1, 2024 and sell it today you would earn a total of 450.00 from holding Genovis AB or generate 20.69% 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. CellaVision AB
Performance |
| Timeline |
| Genovis AB |
| CellaVision AB |
Genovis AB and CellaVision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovis AB and CellaVision
The main advantage of trading using opposite Genovis AB and CellaVision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, CellaVision 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 CellaVision will offset losses from the drop in CellaVision's long position.| Genovis AB vs. Skandinaviska Enskilda Banken | Genovis AB vs. Beowulf Mining PLC | Genovis AB vs. White Pearl Technology | Genovis AB vs. Nordic Asia Investment |
| CellaVision vs. Vitrolife AB | CellaVision vs. Biotage AB | CellaVision vs. Sectra AB | CellaVision vs. BioGaia 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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