Correlation Between Medincell and Gensight Biologics
Can any of the company-specific risk be diversified away by investing in both Medincell and Gensight Biologics 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 Medincell and Gensight Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medincell SA and Gensight Biologics SA, you can compare the effects of market volatilities on Medincell and Gensight Biologics 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 Medincell with a short position of Gensight Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medincell and Gensight Biologics.
Diversification Opportunities for Medincell and Gensight Biologics
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Medincell and Gensight is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Medincell SA and Gensight Biologics SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gensight Biologics and Medincell 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 Medincell SA are associated (or correlated) with Gensight Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gensight Biologics has no effect on the direction of Medincell i.e., Medincell and Gensight Biologics go up and down completely randomly.
Pair Corralation between Medincell and Gensight Biologics
Assuming the 90 days trading horizon Medincell is expected to generate 1.16 times less return on investment than Gensight Biologics. But when comparing it to its historical volatility, Medincell SA is 1.94 times less risky than Gensight Biologics. It trades about 0.05 of its potential returns per unit of risk. Gensight Biologics SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Gensight Biologics SA on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Gensight Biologics SA or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medincell SA vs. Gensight Biologics SA
Performance |
| Timeline |
| Medincell SA |
| Gensight Biologics |
Medincell and Gensight Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medincell and Gensight Biologics
The main advantage of trading using opposite Medincell and Gensight Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medincell position performs unexpectedly, Gensight Biologics 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 Gensight Biologics will offset losses from the drop in Gensight Biologics' long position.| Medincell vs. Innate Pharma | Medincell vs. Nanobiotix SA | Medincell vs. Genfit | Medincell vs. AB Science SA |
| Gensight Biologics vs. DBV Technologies SA | Gensight Biologics vs. Inventiva SA | Gensight Biologics vs. Quantum Genomics SA | Gensight Biologics vs. Abivax SA |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |