Correlation Between Gencell and Galileo Tech
Can any of the company-specific risk be diversified away by investing in both Gencell and Galileo Tech 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 Gencell and Galileo Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gencell and Galileo Tech, you can compare the effects of market volatilities on Gencell and Galileo Tech 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 Gencell with a short position of Galileo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gencell and Galileo Tech.
Diversification Opportunities for Gencell and Galileo Tech
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gencell and Galileo is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Gencell and Galileo Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galileo Tech and Gencell 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 Gencell are associated (or correlated) with Galileo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galileo Tech has no effect on the direction of Gencell i.e., Gencell and Galileo Tech go up and down completely randomly.
Pair Corralation between Gencell and Galileo Tech
Assuming the 90 days trading horizon Gencell is expected to under-perform the Galileo Tech. But the stock apears to be less risky and, when comparing its historical volatility, Gencell is 2.13 times less risky than Galileo Tech. The stock trades about -0.12 of its potential returns per unit of risk. The Galileo Tech is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,510 in Galileo Tech on September 1, 2024 and sell it today you would lose (10.00) from holding Galileo Tech or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gencell vs. Galileo Tech
Performance |
| Timeline |
| Gencell |
| Galileo Tech |
Gencell and Galileo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gencell and Galileo Tech
The main advantage of trading using opposite Gencell and Galileo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gencell position performs unexpectedly, Galileo Tech 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 Galileo Tech will offset losses from the drop in Galileo Tech's long position.| Gencell vs. Wesure Global Tech | Gencell vs. Electreon Wireless | Gencell vs. Orbit Technologies | Gencell vs. Batm Advanced Communications |
| Galileo Tech vs. Nextgen | Galileo Tech vs. Gencell | Galileo Tech vs. Bonus Biogroup | Galileo Tech vs. Intelicanna |
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 CEOs Directory module to screen CEOs from public companies around the world.
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