Correlation Between GeneThera and Medigene
Can any of the company-specific risk be diversified away by investing in both GeneThera and Medigene 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 GeneThera and Medigene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GeneThera and Medigene AG, you can compare the effects of market volatilities on GeneThera and Medigene 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 GeneThera with a short position of Medigene. Check out your portfolio center. Please also check ongoing floating volatility patterns of GeneThera and Medigene.
Diversification Opportunities for GeneThera and Medigene
Pay attention - limited upside
The 3 months correlation between GeneThera and Medigene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GeneThera and Medigene AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medigene AG and GeneThera 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 GeneThera are associated (or correlated) with Medigene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medigene AG has no effect on the direction of GeneThera i.e., GeneThera and Medigene go up and down completely randomly.
Pair Corralation between GeneThera and Medigene
Given the investment horizon of 90 days GeneThera is expected to under-perform the Medigene. But the pink sheet apears to be less risky and, when comparing its historical volatility, GeneThera is 1.46 times less risky than Medigene. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Medigene AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 155.00 in Medigene AG on September 14, 2024 and sell it today you would earn a total of 104.00 from holding Medigene AG or generate 67.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 72.49% |
| Values | Daily Returns |
GeneThera vs. Medigene AG
Performance |
| Timeline |
| GeneThera |
| Medigene AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GeneThera and Medigene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GeneThera and Medigene
The main advantage of trading using opposite GeneThera and Medigene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GeneThera position performs unexpectedly, Medigene 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 Medigene will offset losses from the drop in Medigene's long position.| GeneThera vs. Rigel Pharmaceuticals | GeneThera vs. Geron | GeneThera vs. Verastem | GeneThera vs. Immutep Ltd ADR |
| Medigene vs. Northwest Biotherapeutics | Medigene vs. Geron | Medigene vs. Advanced Proteome Therapeutics | Medigene vs. Oxford BioDynamics Plc |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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