Correlation Between Genetron Holdings and Fonar
Can any of the company-specific risk be diversified away by investing in both Genetron Holdings and Fonar 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 Fonar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genetron Holdings and Fonar, you can compare the effects of market volatilities on Genetron Holdings and Fonar 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 Fonar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetron Holdings and Fonar.
Diversification Opportunities for Genetron Holdings and Fonar
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genetron and Fonar is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Genetron Holdings and Fonar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonar 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 Fonar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonar has no effect on the direction of Genetron Holdings i.e., Genetron Holdings and Fonar go up and down completely randomly.
Pair Corralation between Genetron Holdings and Fonar
If you would invest 1,553 in Fonar on August 24, 2024 and sell it today you would earn a total of 92.00 from holding Fonar or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Genetron Holdings vs. Fonar
Performance |
| Timeline |
| Genetron Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fonar |
Genetron Holdings and Fonar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetron Holdings and Fonar
The main advantage of trading using opposite Genetron Holdings and Fonar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetron Holdings position performs unexpectedly, Fonar 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 Fonar will offset losses from the drop in Fonar's long position.| Genetron Holdings vs. Psychemedics | Genetron Holdings vs. Sera Prognostics | Genetron Holdings vs. DarioHealth Corp | Genetron Holdings vs. Biodesix |
| Fonar vs. Burning Rock Biotech | Fonar vs. Sera Prognostics | Fonar vs. Exagen Inc | Fonar vs. Castle Biosciences |
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 CEOs Directory module to screen CEOs from public companies around the world.
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