Correlation Between Genscript Biotech and Graphite Bio
Can any of the company-specific risk be diversified away by investing in both Genscript Biotech and Graphite Bio 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 Graphite Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genscript Biotech and Graphite Bio, you can compare the effects of market volatilities on Genscript Biotech and Graphite Bio 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 Graphite Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genscript Biotech and Graphite Bio.
Diversification Opportunities for Genscript Biotech and Graphite Bio
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Genscript and Graphite is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Genscript Biotech and Graphite Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphite Bio 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 Graphite Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphite Bio has no effect on the direction of Genscript Biotech i.e., Genscript Biotech and Graphite Bio go up and down completely randomly.
Pair Corralation between Genscript Biotech and Graphite Bio
Assuming the 90 days horizon Genscript Biotech is expected to generate 0.84 times more return on investment than Graphite Bio. However, Genscript Biotech is 1.19 times less risky than Graphite Bio. It trades about -0.01 of its potential returns per unit of risk. Graphite Bio is currently generating about -0.01 per unit of risk. If you would invest 238.00 in Genscript Biotech on August 25, 2024 and sell it today you would lose (100.00) from holding Genscript Biotech or give up 42.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.99% |
| Values | Daily Returns |
Genscript Biotech vs. Graphite Bio
Performance |
| Timeline |
| Genscript Biotech |
| Graphite Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genscript Biotech and Graphite Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genscript Biotech and Graphite Bio
The main advantage of trading using opposite Genscript Biotech and Graphite Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genscript Biotech position performs unexpectedly, Graphite Bio 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 Graphite Bio will offset losses from the drop in Graphite Bio'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 |
| Graphite Bio vs. Assembly Biosciences | Graphite Bio vs. Instil Bio | Graphite Bio vs. Nuvation Bio | Graphite Bio vs. Achilles Therapeutics PLC |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
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| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
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| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |