Correlation Between I Tech and Genovis AB
Can any of the company-specific risk be diversified away by investing in both I Tech and Genovis AB 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 I Tech and Genovis AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I Tech and Genovis AB, you can compare the effects of market volatilities on I Tech and Genovis AB 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 I Tech with a short position of Genovis AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of I Tech and Genovis AB.
Diversification Opportunities for I Tech and Genovis AB
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ITECH and Genovis is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding I Tech and Genovis AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genovis AB and I Tech 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 I Tech are associated (or correlated) with Genovis AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genovis AB has no effect on the direction of I Tech i.e., I Tech and Genovis AB go up and down completely randomly.
Pair Corralation between I Tech and Genovis AB
Assuming the 90 days trading horizon I Tech is expected to generate 0.41 times more return on investment than Genovis AB. However, I Tech is 2.41 times less risky than Genovis AB. It trades about -0.03 of its potential returns per unit of risk. Genovis AB is currently generating about -0.02 per unit of risk. If you would invest 5,750 in I Tech on October 26, 2024 and sell it today you would lose (50.00) from holding I Tech or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
I Tech vs. Genovis AB
Performance |
| Timeline |
| I Tech |
| Genovis AB |
I Tech and Genovis AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I Tech and Genovis AB
The main advantage of trading using opposite I Tech and Genovis AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I Tech position performs unexpectedly, Genovis AB 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 Genovis AB will offset losses from the drop in Genovis AB's long position.| I Tech vs. Genovis AB | I Tech vs. Bonesupport Holding AB | I Tech vs. Enea AB | I Tech vs. Xvivo Perfusion AB |
| Genovis AB vs. Qleanair Holding AB | Genovis AB vs. Catena Media plc | Genovis AB vs. Corline Biomedical AB | Genovis AB vs. Nitro Games Oyj |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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