Correlation Between Genworth Financial and FibroGen
Can any of the company-specific risk be diversified away by investing in both Genworth Financial and FibroGen 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 Genworth Financial and FibroGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genworth Financial and FibroGen, you can compare the effects of market volatilities on Genworth Financial and FibroGen 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 Genworth Financial with a short position of FibroGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genworth Financial and FibroGen.
Diversification Opportunities for Genworth Financial and FibroGen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genworth and FibroGen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genworth Financial and FibroGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FibroGen and Genworth Financial 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 Genworth Financial are associated (or correlated) with FibroGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FibroGen has no effect on the direction of Genworth Financial i.e., Genworth Financial and FibroGen go up and down completely randomly.
Pair Corralation between Genworth Financial and FibroGen
If you would invest 10,180 in Genworth Financial on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Genworth Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genworth Financial vs. FibroGen
Performance |
| Timeline |
| Genworth Financial |
| FibroGen |
Genworth Financial and FibroGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genworth Financial and FibroGen
The main advantage of trading using opposite Genworth Financial and FibroGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genworth Financial position performs unexpectedly, FibroGen 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 FibroGen will offset losses from the drop in FibroGen's long position.| Genworth Financial vs. Pea Verde SAB | Genworth Financial vs. Netflix | Genworth Financial vs. Monster Beverage Corp |
| FibroGen vs. Deutsche Bank Aktiengesellschaft | FibroGen vs. Genworth Financial | FibroGen vs. Verizon Communications | FibroGen vs. Grupo Sports World |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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