Correlation Between Genovis AB and Xvivo Perfusion
Can any of the company-specific risk be diversified away by investing in both Genovis AB and Xvivo Perfusion 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 Xvivo Perfusion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovis AB and Xvivo Perfusion AB, you can compare the effects of market volatilities on Genovis AB and Xvivo Perfusion 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 Xvivo Perfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and Xvivo Perfusion.
Diversification Opportunities for Genovis AB and Xvivo Perfusion
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Genovis and Xvivo is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and Xvivo Perfusion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xvivo Perfusion 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 Xvivo Perfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xvivo Perfusion AB has no effect on the direction of Genovis AB i.e., Genovis AB and Xvivo Perfusion go up and down completely randomly.
Pair Corralation between Genovis AB and Xvivo Perfusion
Assuming the 90 days trading horizon Genovis AB is expected to under-perform the Xvivo Perfusion. In addition to that, Genovis AB is 1.31 times more volatile than Xvivo Perfusion AB. It trades about -0.02 of its total potential returns per unit of risk. Xvivo Perfusion AB is currently generating about 0.06 per unit of volatility. If you would invest 24,050 in Xvivo Perfusion AB on November 5, 2024 and sell it today you would earn a total of 22,550 from holding Xvivo Perfusion AB or generate 93.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genovis AB vs. Xvivo Perfusion AB
Performance |
| Timeline |
| Genovis AB |
| Xvivo Perfusion AB |
Genovis AB and Xvivo Perfusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovis AB and Xvivo Perfusion
The main advantage of trading using opposite Genovis AB and Xvivo Perfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, Xvivo Perfusion 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 Xvivo Perfusion will offset losses from the drop in Xvivo Perfusion's long position.| Genovis AB vs. Invisio Communications AB | Genovis AB vs. Nitro Games Oyj | Genovis AB vs. New Nordic Healthbrands | Genovis AB vs. Train Alliance Sweden |
| Xvivo Perfusion vs. Vitrolife AB | Xvivo Perfusion vs. BioArctic AB | Xvivo Perfusion vs. CellaVision AB | Xvivo Perfusion vs. Invisio Communications 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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