Correlation Between Genovis AB and Sedana Medical
Can any of the company-specific risk be diversified away by investing in both Genovis AB and Sedana Medical 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 Sedana Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovis AB and Sedana Medical AB, you can compare the effects of market volatilities on Genovis AB and Sedana Medical 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 Sedana Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and Sedana Medical.
Diversification Opportunities for Genovis AB and Sedana Medical
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genovis and Sedana is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and Sedana Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sedana Medical 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 Sedana Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sedana Medical AB has no effect on the direction of Genovis AB i.e., Genovis AB and Sedana Medical go up and down completely randomly.
Pair Corralation between Genovis AB and Sedana Medical
Assuming the 90 days trading horizon Genovis AB is expected to generate 1.04 times more return on investment than Sedana Medical. However, Genovis AB is 1.04 times more volatile than Sedana Medical AB. It trades about -0.04 of its potential returns per unit of risk. Sedana Medical AB is currently generating about -0.1 per unit of risk. If you would invest 3,760 in Genovis AB on September 1, 2024 and sell it today you would lose (1,135) from holding Genovis AB or give up 30.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genovis AB vs. Sedana Medical AB
Performance |
| Timeline |
| Genovis AB |
| Sedana Medical AB |
Genovis AB and Sedana Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovis AB and Sedana Medical
The main advantage of trading using opposite Genovis AB and Sedana Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, Sedana Medical 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 Sedana Medical will offset losses from the drop in Sedana Medical'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 |
| Sedana Medical vs. Surgical Science Sweden | Sedana Medical vs. Bonesupport Holding AB | Sedana Medical vs. Swedencare publ AB | Sedana Medical vs. Oncopeptides 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |