Correlation Between Genetron Holdings and Burning Rock
Can any of the company-specific risk be diversified away by investing in both Genetron Holdings and Burning Rock 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 Burning Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genetron Holdings and Burning Rock Biotech, you can compare the effects of market volatilities on Genetron Holdings and Burning Rock 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 Burning Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetron Holdings and Burning Rock.
Diversification Opportunities for Genetron Holdings and Burning Rock
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genetron and Burning is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Genetron Holdings and Burning Rock Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burning Rock Biotech 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 Burning Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burning Rock Biotech has no effect on the direction of Genetron Holdings i.e., Genetron Holdings and Burning Rock go up and down completely randomly.
Pair Corralation between Genetron Holdings and Burning Rock
If you would invest 94.00 in Genetron Holdings on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Genetron Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Genetron Holdings vs. Burning Rock Biotech
Performance |
| Timeline |
| Genetron Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Burning Rock Biotech |
Genetron Holdings and Burning Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetron Holdings and Burning Rock
The main advantage of trading using opposite Genetron Holdings and Burning Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetron Holdings position performs unexpectedly, Burning Rock 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 Burning Rock will offset losses from the drop in Burning Rock's long position.| Genetron Holdings vs. Sera Prognostics | Genetron Holdings vs. DarioHealth Corp | Genetron Holdings vs. Biodesix | Genetron Holdings vs. Aclaris Therapeutics |
| Burning Rock vs. Fonar | Burning Rock vs. Sera Prognostics | Burning Rock vs. Neuronetics | Burning Rock vs. DarioHealth Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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