Correlation Between Genovis AB and MIPS AB
Can any of the company-specific risk be diversified away by investing in both Genovis AB and MIPS AB 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 MIPS AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovis AB and MIPS AB, you can compare the effects of market volatilities on Genovis AB and MIPS AB 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 MIPS AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and MIPS AB.
Diversification Opportunities for Genovis AB and MIPS AB
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genovis and MIPS is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and MIPS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIPS 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 MIPS AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIPS AB has no effect on the direction of Genovis AB i.e., Genovis AB and MIPS AB go up and down completely randomly.
Pair Corralation between Genovis AB and MIPS AB
Assuming the 90 days trading horizon Genovis AB is expected to generate 2.56 times more return on investment than MIPS AB. However, Genovis AB is 2.56 times more volatile than MIPS AB. It trades about 0.19 of its potential returns per unit of risk. MIPS AB is currently generating about -0.26 per unit of risk. If you would invest 2,210 in Genovis AB on August 28, 2024 and sell it today you would earn a total of 565.00 from holding Genovis AB or generate 25.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Genovis AB vs. MIPS AB
Performance |
| Timeline |
| Genovis AB |
| MIPS AB |
Genovis AB and MIPS AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovis AB and MIPS AB
The main advantage of trading using opposite Genovis AB and MIPS AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, MIPS AB 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 MIPS AB will offset losses from the drop in MIPS AB's long position.| Genovis AB vs. Systemair AB | Genovis AB vs. Upsales Technology AB | Genovis AB vs. FormPipe Software AB | Genovis AB vs. White Pearl Technology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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