Correlation Between MAIA Biotechnology and Genscript Biotech
Can any of the company-specific risk be diversified away by investing in both MAIA Biotechnology 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 MAIA Biotechnology and Genscript Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAIA Biotechnology and Genscript Biotech, you can compare the effects of market volatilities on MAIA Biotechnology 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 MAIA Biotechnology with a short position of Genscript Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAIA Biotechnology and Genscript Biotech.
Diversification Opportunities for MAIA Biotechnology and Genscript Biotech
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MAIA and Genscript is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding MAIA Biotechnology and Genscript Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genscript Biotech and MAIA Biotechnology 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 MAIA Biotechnology 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 MAIA Biotechnology i.e., MAIA Biotechnology and Genscript Biotech go up and down completely randomly.
Pair Corralation between MAIA Biotechnology and Genscript Biotech
Given the investment horizon of 90 days MAIA Biotechnology is expected to under-perform the Genscript Biotech. In addition to that, MAIA Biotechnology is 1.65 times more volatile than Genscript Biotech. It trades about -0.04 of its total potential returns per unit of risk. Genscript Biotech is currently generating about 0.0 per unit of volatility. If you would invest 140.00 in Genscript Biotech on October 26, 2024 and sell it today you would lose (4.00) from holding Genscript Biotech or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.16% |
| Values | Daily Returns |
MAIA Biotechnology vs. Genscript Biotech
Performance |
| Timeline |
| MAIA Biotechnology |
| Genscript Biotech |
MAIA Biotechnology and Genscript Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAIA Biotechnology and Genscript Biotech
The main advantage of trading using opposite MAIA Biotechnology and Genscript Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAIA Biotechnology 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.| MAIA Biotechnology vs. Lineage Cell Therapeutics | MAIA Biotechnology vs. Armata Pharmaceuticals | MAIA Biotechnology vs. Portage Biotech | MAIA Biotechnology vs. Larimar Therapeutics |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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