Correlation Between Genovis AB and Gabather
Can any of the company-specific risk be diversified away by investing in both Genovis AB and Gabather 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 Gabather into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovis AB and Gabather AB, you can compare the effects of market volatilities on Genovis AB and Gabather 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 Gabather. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and Gabather.
Diversification Opportunities for Genovis AB and Gabather
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genovis and Gabather is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and Gabather AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabather 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 Gabather. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabather AB has no effect on the direction of Genovis AB i.e., Genovis AB and Gabather go up and down completely randomly.
Pair Corralation between Genovis AB and Gabather
Assuming the 90 days trading horizon Genovis AB is expected to generate 0.42 times more return on investment than Gabather. However, Genovis AB is 2.36 times less risky than Gabather. It trades about 0.18 of its potential returns per unit of risk. Gabather AB is currently generating about 0.01 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 | 95.65% |
| Values | Daily Returns |
Genovis AB vs. Gabather AB
Performance |
| Timeline |
| Genovis AB |
| Gabather AB |
Genovis AB and Gabather Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovis AB and Gabather
The main advantage of trading using opposite Genovis AB and Gabather positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, Gabather 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 Gabather will offset losses from the drop in Gabather's long position.| Genovis AB vs. Flexion Mobile PLC | Genovis AB vs. Norion Bank | Genovis AB vs. Lundin Mining | Genovis AB vs. eEducation Albert AB |
| Gabather vs. Sprint Bioscience AB | Gabather vs. Corline Biomedical AB | Gabather vs. Cantargia AB | Gabather vs. Lidds 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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