Correlation Between CellaVision and Genovis AB
Can any of the company-specific risk be diversified away by investing in both CellaVision and Genovis AB 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 CellaVision and Genovis AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CellaVision AB and Genovis AB, you can compare the effects of market volatilities on CellaVision and Genovis AB 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 CellaVision with a short position of Genovis AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of CellaVision and Genovis AB.
Diversification Opportunities for CellaVision and Genovis AB
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CellaVision and Genovis is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding CellaVision AB and Genovis AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genovis AB and CellaVision 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 CellaVision AB are associated (or correlated) with Genovis AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genovis AB has no effect on the direction of CellaVision i.e., CellaVision and Genovis AB go up and down completely randomly.
Pair Corralation between CellaVision and Genovis AB
Assuming the 90 days trading horizon CellaVision is expected to generate 1.44 times less return on investment than Genovis AB. In addition to that, CellaVision is 1.54 times more volatile than Genovis AB. It trades about 0.04 of its total potential returns per unit of risk. Genovis AB is currently generating about 0.1 per unit of volatility. If you would invest 2,365 in Genovis AB on April 24, 2025 and sell it today you would earn a total of 295.00 from holding Genovis AB or generate 12.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.36% |
Values | Daily Returns |
CellaVision AB vs. Genovis AB
Performance |
Timeline |
CellaVision AB |
Genovis AB |
CellaVision and Genovis AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CellaVision and Genovis AB
The main advantage of trading using opposite CellaVision and Genovis AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CellaVision position performs unexpectedly, Genovis AB 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 Genovis AB will offset losses from the drop in Genovis AB's long position.CellaVision vs. Vitrolife AB | CellaVision vs. Biotage AB | CellaVision vs. Sectra AB | CellaVision vs. BioGaia AB |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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