Correlation Between Genetron Holdings and Amer Bio
Can any of the company-specific risk be diversified away by investing in both Genetron Holdings and Amer 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 Genetron Holdings and Amer Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genetron Holdings and Amer Bio Medica, you can compare the effects of market volatilities on Genetron Holdings and Amer 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 Genetron Holdings with a short position of Amer Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetron Holdings and Amer Bio.
Diversification Opportunities for Genetron Holdings and Amer Bio
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genetron and Amer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genetron Holdings and Amer Bio Medica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Bio Medica and Genetron Holdings 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 Genetron Holdings are associated (or correlated) with Amer Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Bio Medica has no effect on the direction of Genetron Holdings i.e., Genetron Holdings and Amer Bio go up and down completely randomly.
Pair Corralation between Genetron Holdings and Amer Bio
If you would invest 1.38 in Amer Bio Medica on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Amer Bio Medica 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 |
Genetron Holdings vs. Amer Bio Medica
Performance |
| Timeline |
| Genetron Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amer Bio Medica |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genetron Holdings and Amer Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetron Holdings and Amer Bio
The main advantage of trading using opposite Genetron Holdings and Amer Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetron Holdings position performs unexpectedly, Amer 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 Amer Bio will offset losses from the drop in Amer Bio's long position.| Genetron Holdings vs. Sera Prognostics | Genetron Holdings vs. DarioHealth Corp | Genetron Holdings vs. Biodesix | Genetron Holdings vs. Aclaris 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |