Correlation Between Genomma Lab and Stemsation International
Can any of the company-specific risk be diversified away by investing in both Genomma Lab and Stemsation International 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 Genomma Lab and Stemsation International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genomma Lab Internacional and Stemsation International, you can compare the effects of market volatilities on Genomma Lab and Stemsation International 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 Genomma Lab with a short position of Stemsation International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genomma Lab and Stemsation International.
Diversification Opportunities for Genomma Lab and Stemsation International
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genomma and Stemsation is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Genomma Lab Internacional and Stemsation International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stemsation International and Genomma Lab 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 Genomma Lab Internacional are associated (or correlated) with Stemsation International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stemsation International has no effect on the direction of Genomma Lab i.e., Genomma Lab and Stemsation International go up and down completely randomly.
Pair Corralation between Genomma Lab and Stemsation International
Assuming the 90 days horizon Genomma Lab is expected to generate 3.42 times less return on investment than Stemsation International. But when comparing it to its historical volatility, Genomma Lab Internacional is 3.59 times less risky than Stemsation International. It trades about 0.1 of its potential returns per unit of risk. Stemsation International is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Stemsation International on September 3, 2024 and sell it today you would earn a total of 0.03 from holding Stemsation International or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Genomma Lab Internacional vs. Stemsation International
Performance |
| Timeline |
| Genomma Lab Internacional |
| Stemsation International |
Genomma Lab and Stemsation International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genomma Lab and Stemsation International
The main advantage of trading using opposite Genomma Lab and Stemsation International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genomma Lab position performs unexpectedly, Stemsation International 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 Stemsation International will offset losses from the drop in Stemsation International's long position.| Genomma Lab vs. Speakeasy Cannabis Club | Genomma Lab vs. City View Green | Genomma Lab vs. Benchmark Botanics | Genomma Lab vs. Hypera SA |
| Stemsation International vs. Green Cures Botanical | Stemsation International vs. Cann American Corp | Stemsation International vs. Indoor Harvest Corp | Stemsation International vs. Genomma Lab Internacional |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| 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 |