Correlation Between Genovis AB and Stayble Therapeutics
Can any of the company-specific risk be diversified away by investing in both Genovis AB and Stayble Therapeutics 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 Stayble Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovis AB and Stayble Therapeutics AB, you can compare the effects of market volatilities on Genovis AB and Stayble Therapeutics 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 Stayble Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and Stayble Therapeutics.
Diversification Opportunities for Genovis AB and Stayble Therapeutics
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genovis and Stayble is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and Stayble Therapeutics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stayble Therapeutics 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 Stayble Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stayble Therapeutics has no effect on the direction of Genovis AB i.e., Genovis AB and Stayble Therapeutics go up and down completely randomly.
Pair Corralation between Genovis AB and Stayble Therapeutics
Assuming the 90 days trading horizon Genovis AB is expected to generate 1.11 times more return on investment than Stayble Therapeutics. However, Genovis AB is 1.11 times more volatile than Stayble Therapeutics AB. It trades about 0.16 of its potential returns per unit of risk. Stayble Therapeutics AB is currently generating about -0.14 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 | 95.65% |
| Values | Daily Returns |
Genovis AB vs. Stayble Therapeutics AB
Performance |
| Timeline |
| Genovis AB |
| Stayble Therapeutics |
Genovis AB and Stayble Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovis AB and Stayble Therapeutics
The main advantage of trading using opposite Genovis AB and Stayble Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, Stayble Therapeutics 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 Stayble Therapeutics will offset losses from the drop in Stayble Therapeutics' 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 |
| Stayble Therapeutics vs. Hansa Biopharma AB | Stayble Therapeutics vs. Saniona AB | Stayble Therapeutics 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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