Correlation Between Bio Techne and Geron
Can any of the company-specific risk be diversified away by investing in both Bio Techne and Geron 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 Bio Techne and Geron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Techne Corp and Geron, you can compare the effects of market volatilities on Bio Techne and Geron 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 Bio Techne with a short position of Geron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Techne and Geron.
Diversification Opportunities for Bio Techne and Geron
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bio and Geron is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bio Techne Corp and Geron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron and Bio Techne 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 Bio Techne Corp are associated (or correlated) with Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of Bio Techne i.e., Bio Techne and Geron go up and down completely randomly.
Pair Corralation between Bio Techne and Geron
Given the investment horizon of 90 days Bio Techne Corp is expected to generate 0.88 times more return on investment than Geron. However, Bio Techne Corp is 1.14 times less risky than Geron. It trades about -0.01 of its potential returns per unit of risk. Geron is currently generating about -0.22 per unit of risk. If you would invest 7,523 in Bio Techne Corp on November 1, 2024 and sell it today you would lose (247.00) from holding Bio Techne Corp or give up 3.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bio Techne Corp vs. Geron
Performance |
| Timeline |
| Bio Techne Corp |
| Geron |
Bio Techne and Geron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bio Techne and Geron
The main advantage of trading using opposite Bio Techne and Geron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Techne position performs unexpectedly, Geron 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 Geron will offset losses from the drop in Geron's long position.| Bio Techne vs. Biomarin Pharmaceutical | Bio Techne vs. Vaxcyte | Bio Techne vs. Liquidia Technologies | Bio Techne vs. Legend Biotech Corp |
| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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