Correlation Between Geron and Gamida Cell
Can any of the company-specific risk be diversified away by investing in both Geron and Gamida Cell 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 Geron and Gamida Cell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geron and Gamida Cell, you can compare the effects of market volatilities on Geron and Gamida Cell 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 Geron with a short position of Gamida Cell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and Gamida Cell.
Diversification Opportunities for Geron and Gamida Cell
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Geron and Gamida is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Geron and Gamida Cell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamida Cell and Geron 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 Geron are associated (or correlated) with Gamida Cell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamida Cell has no effect on the direction of Geron i.e., Geron and Gamida Cell go up and down completely randomly.
Pair Corralation between Geron and Gamida Cell
If you would invest 411.00 in Geron on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Geron or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Geron vs. Gamida Cell
Performance |
| Timeline |
| Geron |
| Gamida Cell |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Geron and Gamida Cell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron and Gamida Cell
The main advantage of trading using opposite Geron and Gamida Cell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron position performs unexpectedly, Gamida Cell 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 Gamida Cell will offset losses from the drop in Gamida Cell's long position.| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
| Gamida Cell vs. BioLineRx | Gamida Cell vs. Ardelyx | Gamida Cell vs. Lexicon Pharmaceuticals | Gamida Cell vs. Seres Therapeutics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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