Correlation Between Genetron Holdings and Volitionrx
Can any of the company-specific risk be diversified away by investing in both Genetron Holdings and Volitionrx 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 Volitionrx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genetron Holdings and Volitionrx, you can compare the effects of market volatilities on Genetron Holdings and Volitionrx 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 Volitionrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetron Holdings and Volitionrx.
Diversification Opportunities for Genetron Holdings and Volitionrx
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Genetron and Volitionrx is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Genetron Holdings and Volitionrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volitionrx 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 Volitionrx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volitionrx has no effect on the direction of Genetron Holdings i.e., Genetron Holdings and Volitionrx go up and down completely randomly.
Pair Corralation between Genetron Holdings and Volitionrx
Considering the 90-day investment horizon Genetron Holdings is expected to generate 0.49 times more return on investment than Volitionrx. However, Genetron Holdings is 2.03 times less risky than Volitionrx. It trades about 0.03 of its potential returns per unit of risk. Volitionrx is currently generating about -0.01 per unit of risk. If you would invest 90.00 in Genetron Holdings on September 14, 2024 and sell it today you would earn a total of 4.00 from holding Genetron Holdings or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 29.09% |
| Values | Daily Returns |
Genetron Holdings vs. Volitionrx
Performance |
| Timeline |
| Genetron Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Volitionrx |
Genetron Holdings and Volitionrx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetron Holdings and Volitionrx
The main advantage of trading using opposite Genetron Holdings and Volitionrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetron Holdings position performs unexpectedly, Volitionrx 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 Volitionrx will offset losses from the drop in Volitionrx's long position.| Genetron Holdings vs. Psychemedics | Genetron Holdings vs. Sera Prognostics | Genetron Holdings vs. DarioHealth Corp | Genetron Holdings vs. Biodesix |
| Volitionrx vs. Electrocore LLC | Volitionrx vs. Evogene | Volitionrx vs. Evolus Inc | Volitionrx vs. OncoCyte 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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