Correlation Between Inogen and Genenta Science
Can any of the company-specific risk be diversified away by investing in both Inogen and Genenta Science 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 Inogen and Genenta Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inogen Inc and Genenta Science SpA, you can compare the effects of market volatilities on Inogen and Genenta Science 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 Inogen with a short position of Genenta Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inogen and Genenta Science.
Diversification Opportunities for Inogen and Genenta Science
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inogen and Genenta is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Genenta Science SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genenta Science SpA and Inogen 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 Inogen Inc are associated (or correlated) with Genenta Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genenta Science SpA has no effect on the direction of Inogen i.e., Inogen and Genenta Science go up and down completely randomly.
Pair Corralation between Inogen and Genenta Science
Given the investment horizon of 90 days Inogen Inc is expected to under-perform the Genenta Science. But the stock apears to be less risky and, when comparing its historical volatility, Inogen Inc is 2.23 times less risky than Genenta Science. The stock trades about -0.08 of its potential returns per unit of risk. The Genenta Science SpA is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 392.00 in Genenta Science SpA on September 2, 2024 and sell it today you would earn a total of 128.00 from holding Genenta Science SpA or generate 32.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inogen Inc vs. Genenta Science SpA
Performance |
| Timeline |
| Inogen Inc |
| Genenta Science SpA |
Inogen and Genenta Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inogen and Genenta Science
The main advantage of trading using opposite Inogen and Genenta Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inogen position performs unexpectedly, Genenta Science 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 Genenta Science will offset losses from the drop in Genenta Science's long position.The idea behind Inogen Inc and Genenta Science SpA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Genenta Science vs. Molecular Partners AG | Genenta Science vs. MediciNova | Genenta Science vs. Anebulo Pharmaceuticals | Genenta Science vs. Champions Oncology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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