Correlation Between Gemina Laboratories and Kaya Holdings
Can any of the company-specific risk be diversified away by investing in both Gemina Laboratories and Kaya Holdings 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 Gemina Laboratories and Kaya Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gemina Laboratories and Kaya Holdings, you can compare the effects of market volatilities on Gemina Laboratories and Kaya Holdings 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 Gemina Laboratories with a short position of Kaya Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemina Laboratories and Kaya Holdings.
Diversification Opportunities for Gemina Laboratories and Kaya Holdings
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gemina and Kaya is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gemina Laboratories and Kaya Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaya Holdings and Gemina Laboratories 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 Gemina Laboratories are associated (or correlated) with Kaya Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaya Holdings has no effect on the direction of Gemina Laboratories i.e., Gemina Laboratories and Kaya Holdings go up and down completely randomly.
Pair Corralation between Gemina Laboratories and Kaya Holdings
Assuming the 90 days horizon Gemina Laboratories is expected to generate 0.79 times more return on investment than Kaya Holdings. However, Gemina Laboratories is 1.27 times less risky than Kaya Holdings. It trades about 0.05 of its potential returns per unit of risk. Kaya Holdings is currently generating about 0.04 per unit of risk. If you would invest 22.00 in Gemina Laboratories on September 2, 2024 and sell it today you would earn a total of 33.00 from holding Gemina Laboratories or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Gemina Laboratories vs. Kaya Holdings
Performance |
| Timeline |
| Gemina Laboratories |
| Kaya Holdings |
Gemina Laboratories and Kaya Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemina Laboratories and Kaya Holdings
The main advantage of trading using opposite Gemina Laboratories and Kaya Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemina Laboratories position performs unexpectedly, Kaya Holdings 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 Kaya Holdings will offset losses from the drop in Kaya Holdings' long position.| Gemina Laboratories vs. Rigel Pharmaceuticals | Gemina Laboratories vs. Geron | Gemina Laboratories vs. Verastem | Gemina Laboratories vs. Immutep Ltd ADR |
| Kaya Holdings vs. MPX International Corp | Kaya Holdings vs. Grown Rogue International | Kaya Holdings vs. Slang Worldwide | Kaya Holdings vs. Decibel Cannabis |
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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