Correlation Between Genscript Biotech and S E

Can any of the company-specific risk be diversified away by investing in both Genscript Biotech and S E 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 Genscript Biotech and S E into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Genscript Biotech and S E BANKEN A , you can compare the effects of market volatilities on Genscript Biotech and S E 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 Genscript Biotech with a short position of S E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genscript Biotech and S E.

Diversification Opportunities for Genscript Biotech and S E

0.63

Correlation Coefficient

Genscript Biotech  S E

Poor diversification

The 3 months correlation between Genscript and SEBA is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Genscript Biotech and S E BANKEN A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S E BANKEN and Genscript Biotech 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 Genscript Biotech are associated (or correlated) with S E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S E BANKEN has no effect on the direction of Genscript Biotech i.e., Genscript Biotech and S E go up and down completely randomly.

Pair Corralation between Genscript Biotech and S E

Assuming the 90 days horizon Genscript Biotech is expected to generate 3.09 times more return on investment than S E. However, Genscript Biotech is 3.09 times more volatile than S E BANKEN A . It trades about 0.17 of its potential returns per unit of risk. S E BANKEN A is currently generating about 0.1 per unit of risk. If you would invest  122.00  in Genscript Biotech on April 23, 2025 and sell it today you would earn a total of  59.00  from holding Genscript Biotech or generate 48.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Genscript Biotech  vs.  S E BANKEN A

Genscript Biotech

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Genscript Biotech are ranked lower than 13 (%) 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.

S E BANKEN

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in S E BANKEN A are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, S E may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Genscript Biotech and S E

The main advantage of trading using opposite Genscript Biotech and S E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genscript Biotech position performs unexpectedly, S E 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 S E will offset losses from the drop in S E's long position.

The idea behind Genscript Biotech and S E BANKEN A 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.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..