Correlation Between Genovis AB and Goobit Group

Can any of the company-specific risk be diversified away by investing in both Genovis AB and Goobit Group 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 Genovis AB and Goobit Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Genovis AB and Goobit Group AB, you can compare the effects of market volatilities on Genovis AB and Goobit Group 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 Genovis AB with a short position of Goobit Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and Goobit Group.

Diversification Opportunities for Genovis AB and Goobit Group

0.64

Correlation Coefficient

Genovis AB  Goobit Group

Poor diversification

The 3 months correlation between Genovis and Goobit is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and Goobit Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goobit Group AB and Genovis AB 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 Genovis AB are associated (or correlated) with Goobit Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goobit Group AB has no effect on the direction of Genovis AB i.e., Genovis AB and Goobit Group go up and down completely randomly.

Pair Corralation between Genovis AB and Goobit Group

Assuming the 90 days trading horizon Genovis AB is expected to generate 5.31 times less return on investment than Goobit Group. But when comparing it to its historical volatility, Genovis AB is 5.1 times less risky than Goobit Group. It trades about 0.12 of its potential returns per unit of risk. Goobit Group AB is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  8.90  in Goobit Group AB on April 24, 2025 and sell it today you would earn a total of  6.10  from holding Goobit Group AB or generate 68.54% return on investment over 90 days.

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

Genovis AB  vs.  Goobit Group AB

Genovis AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Genovis AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Genovis AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Goobit Group AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Goobit Group AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Goobit Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genovis AB and Goobit Group

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

The idea behind Genovis AB and Goobit Group AB 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.