Correlation Between Genovis AB and ExpreS2ion Biotech

Can any of the company-specific risk be diversified away by investing in both Genovis AB and ExpreS2ion 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 Genovis AB and ExpreS2ion Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Genovis AB and ExpreS2ion Biotech Holding, you can compare the effects of market volatilities on Genovis AB and ExpreS2ion 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 Genovis AB with a short position of ExpreS2ion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and ExpreS2ion Biotech.

Diversification Opportunities for Genovis AB and ExpreS2ion Biotech

0.77

Correlation Coefficient

Genovis AB  ExpreS2ion Biotech

Poor diversification

The 3 months correlation between Genovis and ExpreS2ion is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and ExpreS2ion Biotech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExpreS2ion Biotech 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 ExpreS2ion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExpreS2ion Biotech has no effect on the direction of Genovis AB i.e., Genovis AB and ExpreS2ion Biotech go up and down completely randomly.

Pair Corralation between Genovis AB and ExpreS2ion Biotech

Assuming the 90 days trading horizon Genovis AB is expected to generate 1.11 times less return on investment than ExpreS2ion Biotech. But when comparing it to its historical volatility, Genovis AB is 2.13 times less risky than ExpreS2ion Biotech. It trades about 0.11 of its potential returns per unit of risk. ExpreS2ion Biotech Holding is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,180  in ExpreS2ion Biotech Holding on April 23, 2025 and sell it today you would earn a total of  360.00  from holding ExpreS2ion Biotech Holding or generate 16.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.77%
Values	Daily Returns

Genovis AB  vs.  ExpreS2ion Biotech Holding

Genovis AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Genovis AB are ranked lower than 8 (%) 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.

ExpreS2ion Biotech

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ExpreS2ion Biotech Holding are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, ExpreS2ion Biotech sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genovis AB and ExpreS2ion Biotech

The main advantage of trading using opposite Genovis AB and ExpreS2ion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, ExpreS2ion 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 ExpreS2ion Biotech will offset losses from the drop in ExpreS2ion Biotech's long position.

The idea behind Genovis AB and ExpreS2ion Biotech Holding 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.