Correlation Between Recursion Pharmaceuticals and GENERAL
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By analyzing existing cross correlation between Recursion Pharmaceuticals and GENERAL ELEC CAP, you can compare the effects of market volatilities on Recursion Pharmaceuticals and GENERAL 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 Recursion Pharmaceuticals with a short position of GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Recursion Pharmaceuticals and GENERAL.
Diversification Opportunities for Recursion Pharmaceuticals and GENERAL
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Recursion and GENERAL is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Recursion Pharmaceuticals and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP and Recursion Pharmaceuticals 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 Recursion Pharmaceuticals are associated (or correlated) with GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Recursion Pharmaceuticals i.e., Recursion Pharmaceuticals and GENERAL go up and down completely randomly.
Pair Corralation between Recursion Pharmaceuticals and GENERAL
Given the investment horizon of 90 days Recursion Pharmaceuticals is expected to under-perform the GENERAL. In addition to that, Recursion Pharmaceuticals is 4.28 times more volatile than GENERAL ELEC CAP. It trades about -0.01 of its total potential returns per unit of risk. GENERAL ELEC CAP is currently generating about 0.02 per unit of volatility. If you would invest 9,944 in GENERAL ELEC CAP on September 12, 2024 and sell it today you would earn a total of 202.00 from holding GENERAL ELEC CAP or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.77% |
| Values | Daily Returns |
Recursion Pharmaceuticals vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Recursion Pharmaceuticals |
| GENERAL ELEC CAP |
Recursion Pharmaceuticals and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Recursion Pharmaceuticals and GENERAL
The main advantage of trading using opposite Recursion Pharmaceuticals and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Recursion Pharmaceuticals position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Recursion Pharmaceuticals vs. Absci Corp | Recursion Pharmaceuticals vs. Affimed NV | Recursion Pharmaceuticals vs. Sana Biotechnology | Recursion Pharmaceuticals vs. Relay Therapeutics |
| GENERAL vs. AEP TEX INC | GENERAL vs. US BANK NATIONAL | GENERAL vs. Recursion Pharmaceuticals | GENERAL vs. SoundHound AI |
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.
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