Correlation Between Boston Beer and Genscript Biotech

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Can any of the company-specific risk be diversified away by investing in both Boston Beer 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 Boston Beer and Genscript Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boston Beer and Genscript Biotech, you can compare the effects of market volatilities on Boston Beer 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 Boston Beer with a short position of Genscript Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and Genscript Biotech.

Diversification Opportunities for Boston Beer and Genscript Biotech

-0.83
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Boston and Genscript is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Boston Beer and Genscript Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genscript Biotech and Boston Beer 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 The Boston Beer 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 Boston Beer i.e., Boston Beer and Genscript Biotech go up and down completely randomly.

Pair Corralation between Boston Beer and Genscript Biotech

Assuming the 90 days trading horizon The Boston Beer is expected to under-perform the Genscript Biotech. But the stock apears to be less risky and, when comparing its historical volatility, The Boston Beer is 2.08 times less risky than Genscript Biotech. The stock trades about -0.19 of its potential returns per unit of risk. The Genscript Biotech is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  119.00  in Genscript Biotech on April 22, 2025 and sell it today you would earn a total of  62.00  from holding Genscript Biotech or generate 52.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

The Boston Beer  vs.  Genscript Biotech

 Performance 
       Timeline  
Boston Beer 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days The Boston Beer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Genscript Biotech 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Genscript Biotech are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Genscript Biotech reported solid returns over the last few months and may actually be approaching a breakup point.

Boston Beer and Genscript Biotech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Boston Beer and Genscript Biotech

The main advantage of trading using opposite Boston Beer and Genscript Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer 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.
The idea behind The Boston Beer and Genscript Biotech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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