Correlation Between Geron and Bio Techne
Can any of the company-specific risk be diversified away by investing in both Geron and Bio Techne 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 Bio Techne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geron and Bio Techne Corp, you can compare the effects of market volatilities on Geron and Bio Techne 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 Bio Techne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and Bio Techne.
Diversification Opportunities for Geron and Bio Techne
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Geron and Bio is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Geron and Bio Techne Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Techne Corp 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 Bio Techne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Techne Corp has no effect on the direction of Geron i.e., Geron and Bio Techne go up and down completely randomly.
Pair Corralation between Geron and Bio Techne
Given the investment horizon of 90 days Geron is expected to generate 2.74 times more return on investment than Bio Techne. However, Geron is 2.74 times more volatile than Bio Techne Corp. It trades about 0.03 of its potential returns per unit of risk. Bio Techne Corp is currently generating about 0.01 per unit of risk. If you would invest 369.00 in Geron on August 31, 2024 and sell it today you would earn a total of 43.00 from holding Geron or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geron vs. Bio Techne Corp
Performance |
| Timeline |
| Geron |
| Bio Techne Corp |
Geron and Bio Techne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron and Bio Techne
The main advantage of trading using opposite Geron and Bio Techne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron position performs unexpectedly, Bio Techne 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 Bio Techne will offset losses from the drop in Bio Techne's long position.| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
| Bio Techne vs. Biomarin Pharmaceutical | Bio Techne vs. Vaxcyte | Bio Techne vs. Liquidia Technologies | Bio Techne vs. Legend Biotech Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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