Correlation Between Genscript Biotech and Connect Biopharma
Can any of the company-specific risk be diversified away by investing in both Genscript Biotech and Connect Biopharma 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 Genscript Biotech and Connect Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genscript Biotech and Connect Biopharma Holdings, you can compare the effects of market volatilities on Genscript Biotech and Connect Biopharma 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 Genscript Biotech with a short position of Connect Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genscript Biotech and Connect Biopharma.
Diversification Opportunities for Genscript Biotech and Connect Biopharma
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genscript and Connect is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Genscript Biotech and Connect Biopharma Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Connect Biopharma and Genscript Biotech 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 Genscript Biotech are associated (or correlated) with Connect Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Connect Biopharma has no effect on the direction of Genscript Biotech i.e., Genscript Biotech and Connect Biopharma go up and down completely randomly.
Pair Corralation between Genscript Biotech and Connect Biopharma
Assuming the 90 days horizon Genscript Biotech is expected to under-perform the Connect Biopharma. But the pink sheet apears to be less risky and, when comparing its historical volatility, Genscript Biotech is 1.99 times less risky than Connect Biopharma. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Connect Biopharma Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 118.00 in Connect Biopharma Holdings on August 29, 2024 and sell it today you would lose (21.00) from holding Connect Biopharma Holdings or give up 17.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genscript Biotech vs. Connect Biopharma Holdings
Performance |
| Timeline |
| Genscript Biotech |
| Connect Biopharma |
Genscript Biotech and Connect Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genscript Biotech and Connect Biopharma
The main advantage of trading using opposite Genscript Biotech and Connect Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genscript Biotech position performs unexpectedly, Connect Biopharma 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 Connect Biopharma will offset losses from the drop in Connect Biopharma's long position.| Genscript Biotech vs. Telix Pharmaceuticals Limited | Genscript Biotech vs. Keros Therapeutics | Genscript Biotech vs. Zentalis Pharmaceuticals Llc | Genscript Biotech vs. Innovent Biologics |
| Connect Biopharma vs. Eliem Therapeutics | Connect Biopharma vs. Scpharmaceuticals | Connect Biopharma vs. Milestone Pharmaceuticals | Connect Biopharma vs. Seres Therapeutics |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |