Correlation Between Gensight Biologics and Mediantechn
Can any of the company-specific risk be diversified away by investing in both Gensight Biologics and Mediantechn 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 Gensight Biologics and Mediantechn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gensight Biologics SA and Mediantechn, you can compare the effects of market volatilities on Gensight Biologics and Mediantechn 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 Gensight Biologics with a short position of Mediantechn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gensight Biologics and Mediantechn.
Diversification Opportunities for Gensight Biologics and Mediantechn
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gensight and Mediantechn is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Gensight Biologics SA and Mediantechn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediantechn and Gensight 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 Gensight Biologics SA are associated (or correlated) with Mediantechn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediantechn has no effect on the direction of Gensight Biologics i.e., Gensight Biologics and Mediantechn go up and down completely randomly.
Pair Corralation between Gensight Biologics and Mediantechn
Assuming the 90 days trading horizon Gensight Biologics SA is expected to under-perform the Mediantechn. In addition to that, Gensight Biologics is 1.21 times more volatile than Mediantechn. It trades about -0.11 of its total potential returns per unit of risk. Mediantechn is currently generating about -0.02 per unit of volatility. If you would invest 373.00 in Mediantechn on September 13, 2024 and sell it today you would lose (28.00) from holding Mediantechn or give up 7.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gensight Biologics SA vs. Mediantechn
Performance |
| Timeline |
| Gensight Biologics |
| Mediantechn |
Gensight Biologics and Mediantechn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gensight Biologics and Mediantechn
The main advantage of trading using opposite Gensight Biologics and Mediantechn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gensight Biologics position performs unexpectedly, Mediantechn 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 Mediantechn will offset losses from the drop in Mediantechn's long position.| Gensight Biologics vs. DBV Technologies SA | Gensight Biologics vs. Inventiva SA | Gensight Biologics vs. Quantum Genomics SA | Gensight Biologics vs. Abivax SA |
| Mediantechn vs. Gensight Biologics SA | Mediantechn vs. Innate Pharma | Mediantechn vs. Poxel SA | Mediantechn vs. Nanobiotix 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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