Correlation Between Geron and Sosei Group
Can any of the company-specific risk be diversified away by investing in both Geron and Sosei Group 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 Sosei Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geron and Sosei Group, you can compare the effects of market volatilities on Geron and Sosei Group 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 Sosei Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and Sosei Group.
Diversification Opportunities for Geron and Sosei Group
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Geron and Sosei is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Geron and Sosei Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sosei Group 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 Sosei Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sosei Group has no effect on the direction of Geron i.e., Geron and Sosei Group go up and down completely randomly.
Pair Corralation between Geron and Sosei Group
Given the investment horizon of 90 days Geron is expected to generate 12.81 times less return on investment than Sosei Group. In addition to that, Geron is 1.26 times more volatile than Sosei Group. It trades about 0.02 of its total potential returns per unit of risk. Sosei Group is currently generating about 0.26 per unit of volatility. If you would invest 725.00 in Sosei Group on September 2, 2024 and sell it today you would earn a total of 80.00 from holding Sosei Group or generate 11.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Geron vs. Sosei Group
Performance |
| Timeline |
| Geron |
| Sosei Group |
Geron and Sosei Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron and Sosei Group
The main advantage of trading using opposite Geron and Sosei Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron position performs unexpectedly, Sosei Group 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 Sosei Group will offset losses from the drop in Sosei Group's long position.| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
| Sosei Group vs. Rigel Pharmaceuticals | Sosei Group vs. Geron | Sosei Group vs. Verastem | Sosei Group vs. Immutep Ltd ADR |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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