Correlation Between Innovent Biologics and Genscript Biotech
Can any of the company-specific risk be diversified away by investing in both Innovent Biologics and Genscript Biotech 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 Innovent Biologics and Genscript Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovent Biologics and Genscript Biotech, you can compare the effects of market volatilities on Innovent Biologics and Genscript Biotech 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 Innovent Biologics with a short position of Genscript Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovent Biologics and Genscript Biotech.
Diversification Opportunities for Innovent Biologics and Genscript Biotech
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Innovent and Genscript is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Innovent Biologics and Genscript Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genscript Biotech and Innovent Biologics 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 Innovent Biologics are associated (or correlated) with Genscript Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genscript Biotech has no effect on the direction of Innovent Biologics i.e., Innovent Biologics and Genscript Biotech go up and down completely randomly.
Pair Corralation between Innovent Biologics and Genscript Biotech
Assuming the 90 days horizon Innovent Biologics is expected to under-perform the Genscript Biotech. In addition to that, Innovent Biologics is 1.38 times more volatile than Genscript Biotech. It trades about -0.15 of its total potential returns per unit of risk. Genscript Biotech is currently generating about 0.15 per unit of volatility. If you would invest 127.00 in Genscript Biotech on November 5, 2024 and sell it today you would earn a total of 9.00 from holding Genscript Biotech or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Innovent Biologics vs. Genscript Biotech
Performance |
| Timeline |
| Innovent Biologics |
| Genscript Biotech |
Innovent Biologics and Genscript Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovent Biologics and Genscript Biotech
The main advantage of trading using opposite Innovent Biologics and Genscript Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovent Biologics position performs unexpectedly, Genscript Biotech 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 Genscript Biotech will offset losses from the drop in Genscript Biotech's long position.| Innovent Biologics vs. Telix Pharmaceuticals Limited | Innovent Biologics vs. Keros Therapeutics | Innovent Biologics vs. MAIA Biotechnology | Innovent Biologics vs. Clarity Pharmaceuticals |
| Genscript Biotech vs. Telix Pharmaceuticals Limited | Genscript Biotech vs. Keros Therapeutics | Genscript Biotech vs. Zentalis Pharmaceuticals Llc | Genscript Biotech vs. Innovent Biologics |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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