Correlation Between Genocea Biosciences and Yum Brands
Can any of the company-specific risk be diversified away by investing in both Genocea Biosciences and Yum Brands 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 Yum Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genocea Biosciences and Yum Brands, you can compare the effects of market volatilities on Genocea Biosciences and Yum Brands 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 Yum Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genocea Biosciences and Yum Brands.
Diversification Opportunities for Genocea Biosciences and Yum Brands
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genocea and Yum is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Genocea Biosciences and Yum Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yum Brands 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 Yum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yum Brands has no effect on the direction of Genocea Biosciences i.e., Genocea Biosciences and Yum Brands go up and down completely randomly.
Pair Corralation between Genocea Biosciences and Yum Brands
If you would invest 13,191 in Yum Brands on September 12, 2024 and sell it today you would earn a total of 631.00 from holding Yum Brands or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
Genocea Biosciences vs. Yum Brands
Performance |
| Timeline |
| Genocea Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yum Brands |
Genocea Biosciences and Yum Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genocea Biosciences and Yum Brands
The main advantage of trading using opposite Genocea Biosciences and Yum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genocea Biosciences position performs unexpectedly, Yum Brands 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 Yum Brands will offset losses from the drop in Yum Brands' long position.| Genocea Biosciences vs. Mesa Air Group | Genocea Biosciences vs. Yuexiu Transport Infrastructure | Genocea Biosciences vs. Porvair plc | Genocea Biosciences vs. AerSale Corp |
| Yum Brands vs. Noble Romans | Yum Brands vs. Good Times Restaurants | Yum Brands vs. Flanigans Enterprises | Yum Brands vs. FAT Brands |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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