Correlation Between Kancera AB and Genovis AB
Can any of the company-specific risk be diversified away by investing in both Kancera AB 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 Kancera AB and Genovis AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kancera AB and Genovis AB, you can compare the effects of market volatilities on Kancera AB 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 Kancera AB with a short position of Genovis AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kancera AB and Genovis AB.
Diversification Opportunities for Kancera AB and Genovis AB
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kancera and Genovis is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kancera AB and Genovis AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genovis AB and Kancera AB 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 Kancera AB 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 Kancera AB i.e., Kancera AB and Genovis AB go up and down completely randomly.
Pair Corralation between Kancera AB and Genovis AB
Assuming the 90 days trading horizon Kancera AB is expected to under-perform the Genovis AB. In addition to that, Kancera AB is 2.13 times more volatile than Genovis AB. It trades about -0.11 of its total potential returns per unit of risk. Genovis AB is currently generating about 0.18 per unit of volatility. If you would invest 2,210 in Genovis AB on August 29, 2024 and sell it today you would earn a total of 530.00 from holding Genovis AB or generate 23.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kancera AB vs. Genovis AB
Performance |
| Timeline |
| Kancera AB |
| Genovis AB |
Kancera AB and Genovis AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kancera AB and Genovis AB
The main advantage of trading using opposite Kancera AB and Genovis AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kancera AB 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.| Kancera AB vs. Combigene AB | Kancera AB vs. Cantargia AB | Kancera AB vs. Fingerprint Cards AB | Kancera AB vs. Spectrumone publ AB |
| Genovis AB vs. Flexion Mobile PLC | Genovis AB vs. Norion Bank | Genovis AB vs. Lundin Mining | Genovis AB vs. eEducation Albert AB |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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