Correlation Between Genocea Biosciences and BioCardia
Can any of the company-specific risk be diversified away by investing in both Genocea Biosciences and BioCardia 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 BioCardia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genocea Biosciences and BioCardia, you can compare the effects of market volatilities on Genocea Biosciences and BioCardia 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 BioCardia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genocea Biosciences and BioCardia.
Diversification Opportunities for Genocea Biosciences and BioCardia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genocea and BioCardia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genocea Biosciences and BioCardia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioCardia 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 BioCardia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioCardia has no effect on the direction of Genocea Biosciences i.e., Genocea Biosciences and BioCardia go up and down completely randomly.
Pair Corralation between Genocea Biosciences and BioCardia
If you would invest 73.00 in BioCardia on November 2, 2024 and sell it today you would lose (73.00) from holding BioCardia or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Genocea Biosciences vs. BioCardia
Performance |
| Timeline |
| Genocea Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BioCardia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genocea Biosciences and BioCardia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genocea Biosciences and BioCardia
The main advantage of trading using opposite Genocea Biosciences and BioCardia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genocea Biosciences position performs unexpectedly, BioCardia 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 BioCardia will offset losses from the drop in BioCardia's long position.| Genocea Biosciences vs. Chemours Co | Genocea Biosciences vs. The Cheesecake Factory | Genocea Biosciences vs. First Watch Restaurant | Genocea Biosciences vs. Cracker Barrel Old |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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