Correlation Between Genetron Holdings and Aclaris Therapeutics
Can any of the company-specific risk be diversified away by investing in both Genetron Holdings and Aclaris Therapeutics 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 Aclaris Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genetron Holdings and Aclaris Therapeutics, you can compare the effects of market volatilities on Genetron Holdings and Aclaris Therapeutics 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 Aclaris Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetron Holdings and Aclaris Therapeutics.
Diversification Opportunities for Genetron Holdings and Aclaris Therapeutics
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genetron and Aclaris is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Genetron Holdings and Aclaris Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aclaris Therapeutics 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 Aclaris Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aclaris Therapeutics has no effect on the direction of Genetron Holdings i.e., Genetron Holdings and Aclaris Therapeutics go up and down completely randomly.
Pair Corralation between Genetron Holdings and Aclaris Therapeutics
If you would invest 120.00 in Aclaris Therapeutics on August 28, 2024 and sell it today you would earn a total of 279.00 from holding Aclaris Therapeutics or generate 232.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Genetron Holdings vs. Aclaris Therapeutics
Performance |
| Timeline |
| Genetron Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aclaris Therapeutics |
Genetron Holdings and Aclaris Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetron Holdings and Aclaris Therapeutics
The main advantage of trading using opposite Genetron Holdings and Aclaris Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetron Holdings position performs unexpectedly, Aclaris Therapeutics 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 Aclaris Therapeutics will offset losses from the drop in Aclaris Therapeutics' long position.| Genetron Holdings vs. Psychemedics | Genetron Holdings vs. Sera Prognostics | Genetron Holdings vs. DarioHealth Corp | Genetron Holdings vs. Biodesix |
| Aclaris Therapeutics vs. Neogen | Aclaris Therapeutics vs. Qiagen NV | Aclaris Therapeutics vs. Sotera Health Co | Aclaris Therapeutics vs. RadNet Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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