Correlation Between Genomtec and Lubelski Wegiel
Can any of the company-specific risk be diversified away by investing in both Genomtec and Lubelski Wegiel 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 Genomtec and Lubelski Wegiel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genomtec SA and Lubelski Wegiel Bogdanka, you can compare the effects of market volatilities on Genomtec and Lubelski Wegiel 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 Genomtec with a short position of Lubelski Wegiel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genomtec and Lubelski Wegiel.
Diversification Opportunities for Genomtec and Lubelski Wegiel
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Genomtec and Lubelski is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Genomtec SA and Lubelski Wegiel Bogdanka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lubelski Wegiel Bogdanka and Genomtec 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 Genomtec SA are associated (or correlated) with Lubelski Wegiel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lubelski Wegiel Bogdanka has no effect on the direction of Genomtec i.e., Genomtec and Lubelski Wegiel go up and down completely randomly.
Pair Corralation between Genomtec and Lubelski Wegiel
Assuming the 90 days trading horizon Genomtec SA is expected to under-perform the Lubelski Wegiel. In addition to that, Genomtec is 1.06 times more volatile than Lubelski Wegiel Bogdanka. It trades about -0.33 of its total potential returns per unit of risk. Lubelski Wegiel Bogdanka is currently generating about 0.14 per unit of volatility. If you would invest 2,140 in Lubelski Wegiel Bogdanka on September 5, 2024 and sell it today you would earn a total of 150.00 from holding Lubelski Wegiel Bogdanka or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genomtec SA vs. Lubelski Wegiel Bogdanka
Performance |
| Timeline |
| Genomtec SA |
| Lubelski Wegiel Bogdanka |
Genomtec and Lubelski Wegiel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genomtec and Lubelski Wegiel
The main advantage of trading using opposite Genomtec and Lubelski Wegiel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genomtec position performs unexpectedly, Lubelski Wegiel 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 Lubelski Wegiel will offset losses from the drop in Lubelski Wegiel's long position.| Genomtec vs. Banco Santander SA | Genomtec vs. UniCredit SpA | Genomtec vs. CEZ as | Genomtec vs. Polski Koncern Naftowy |
| Lubelski Wegiel vs. Clean Carbon Energy | Lubelski Wegiel vs. Vercom SA | Lubelski Wegiel vs. CFI Holding SA | Lubelski Wegiel vs. Gobarto SA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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