Correlation Between Gemina Laboratories and Nokia
Can any of the company-specific risk be diversified away by investing in both Gemina Laboratories and Nokia 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 Nokia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gemina Laboratories and Nokia, you can compare the effects of market volatilities on Gemina Laboratories and Nokia 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 Nokia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemina Laboratories and Nokia.
Diversification Opportunities for Gemina Laboratories and Nokia
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gemina and Nokia is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gemina Laboratories and Nokia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia 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 Nokia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia has no effect on the direction of Gemina Laboratories i.e., Gemina Laboratories and Nokia go up and down completely randomly.
Pair Corralation between Gemina Laboratories and Nokia
Assuming the 90 days horizon Gemina Laboratories is expected to generate 4.62 times more return on investment than Nokia. However, Gemina Laboratories is 4.62 times more volatile than Nokia. It trades about 0.35 of its potential returns per unit of risk. Nokia is currently generating about -0.29 per unit of risk. If you would invest 28.00 in Gemina Laboratories on September 1, 2024 and sell it today you would earn a total of 27.00 from holding Gemina Laboratories or generate 96.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gemina Laboratories vs. Nokia
Performance |
| Timeline |
| Gemina Laboratories |
| Nokia |
Gemina Laboratories and Nokia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemina Laboratories and Nokia
The main advantage of trading using opposite Gemina Laboratories and Nokia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemina Laboratories position performs unexpectedly, Nokia 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 Nokia will offset losses from the drop in Nokia's long position.| Gemina Laboratories vs. Novo Nordisk AS | Gemina Laboratories vs. Genmab AS | Gemina Laboratories vs. Inhibikase Therapeutics | Gemina Laboratories vs. Purple Biotech |
| Nokia vs. Mynaric AG ADR | Nokia vs. Knowles Cor | Nokia vs. Comtech Telecommunications Corp | Nokia vs. Ituran Location and |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |