Correlation Between Genetron Holdings and Psychemedics
Can any of the company-specific risk be diversified away by investing in both Genetron Holdings and Psychemedics 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 Psychemedics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genetron Holdings and Psychemedics, you can compare the effects of market volatilities on Genetron Holdings and Psychemedics 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 Psychemedics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetron Holdings and Psychemedics.
Diversification Opportunities for Genetron Holdings and Psychemedics
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genetron and Psychemedics is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Genetron Holdings and Psychemedics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Psychemedics 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 Psychemedics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Psychemedics has no effect on the direction of Genetron Holdings i.e., Genetron Holdings and Psychemedics go up and down completely randomly.
Pair Corralation between Genetron Holdings and Psychemedics
If you would invest 94.00 in Genetron Holdings on August 24, 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 | 0.79% |
| Values | Daily Returns |
Genetron Holdings vs. Psychemedics
Performance |
| Timeline |
| Genetron Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Psychemedics |
Genetron Holdings and Psychemedics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetron Holdings and Psychemedics
The main advantage of trading using opposite Genetron Holdings and Psychemedics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetron Holdings position performs unexpectedly, Psychemedics 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 Psychemedics will offset losses from the drop in Psychemedics' long position.| Genetron Holdings vs. Psychemedics | Genetron Holdings vs. Sera Prognostics | Genetron Holdings vs. DarioHealth Corp | Genetron Holdings vs. Biodesix |
| Psychemedics vs. Fonar | Psychemedics vs. Burning Rock Biotech | Psychemedics vs. Sera Prognostics | Psychemedics 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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