Correlation Between Gracell Biotechnologies and Generation Bio
Can any of the company-specific risk be diversified away by investing in both Gracell Biotechnologies and Generation 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 Gracell Biotechnologies and Generation Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gracell Biotechnologies and Generation Bio Co, you can compare the effects of market volatilities on Gracell Biotechnologies and Generation 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 Gracell Biotechnologies with a short position of Generation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gracell Biotechnologies and Generation Bio.
Diversification Opportunities for Gracell Biotechnologies and Generation Bio
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gracell and Generation is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gracell Biotechnologies and Generation Bio Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Bio and Gracell Biotechnologies 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 Gracell Biotechnologies are associated (or correlated) with Generation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Bio has no effect on the direction of Gracell Biotechnologies i.e., Gracell Biotechnologies and Generation Bio go up and down completely randomly.
Pair Corralation between Gracell Biotechnologies and Generation Bio
If you would invest 402.00 in Gracell Biotechnologies on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Gracell Biotechnologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Gracell Biotechnologies vs. Generation Bio Co
Performance |
| Timeline |
| Gracell Biotechnologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Generation Bio |
Gracell Biotechnologies and Generation Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gracell Biotechnologies and Generation Bio
The main advantage of trading using opposite Gracell Biotechnologies and Generation Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gracell Biotechnologies position performs unexpectedly, Generation 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 Generation Bio will offset losses from the drop in Generation Bio's long position.| Gracell Biotechnologies vs. Monte Rosa Therapeutics | Gracell Biotechnologies vs. Design Therapeutics | Gracell Biotechnologies vs. Erasca Inc | Gracell Biotechnologies vs. NextCure |
| Generation Bio vs. Monte Rosa Therapeutics | Generation Bio vs. Nkarta Inc | Generation Bio vs. Lyell Immunopharma | Generation Bio vs. Sana Biotechnology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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