Correlation Between Genocea Biosciences and Parker Hannifin
Can any of the company-specific risk be diversified away by investing in both Genocea Biosciences and Parker Hannifin 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 Genocea Biosciences and Parker Hannifin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genocea Biosciences and Parker Hannifin, you can compare the effects of market volatilities on Genocea Biosciences and Parker Hannifin 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 Genocea Biosciences with a short position of Parker Hannifin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genocea Biosciences and Parker Hannifin.
Diversification Opportunities for Genocea Biosciences and Parker Hannifin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genocea and Parker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genocea Biosciences and Parker Hannifin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parker Hannifin and Genocea Biosciences 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 Genocea Biosciences are associated (or correlated) with Parker Hannifin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parker Hannifin has no effect on the direction of Genocea Biosciences i.e., Genocea Biosciences and Parker Hannifin go up and down completely randomly.
Pair Corralation between Genocea Biosciences and Parker Hannifin
Given the investment horizon of 90 days Genocea Biosciences is expected to generate 193.1 times more return on investment than Parker Hannifin. However, Genocea Biosciences is 193.1 times more volatile than Parker Hannifin. It trades about 0.29 of its potential returns per unit of risk. Parker Hannifin is currently generating about 0.1 per unit of risk. If you would invest 0.31 in Genocea Biosciences on November 2, 2024 and sell it today you would lose (0.29) from holding Genocea Biosciences or give up 93.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.02% |
| Values | Daily Returns |
Genocea Biosciences vs. Parker Hannifin
Performance |
| Timeline |
| Genocea Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Parker Hannifin |
Genocea Biosciences and Parker Hannifin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genocea Biosciences and Parker Hannifin
The main advantage of trading using opposite Genocea Biosciences and Parker Hannifin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genocea Biosciences position performs unexpectedly, Parker Hannifin 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 Parker Hannifin will offset losses from the drop in Parker Hannifin's long position.| Genocea Biosciences vs. WEC Energy Group | Genocea Biosciences vs. Atmos Energy | Genocea Biosciences vs. NRG Energy | Genocea Biosciences vs. enVVeno Medical Corp |
| Parker Hannifin vs. Illinois Tool Works | Parker Hannifin vs. Pentair PLC | Parker Hannifin vs. Emerson Electric | Parker Hannifin vs. Smith AO |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |