Correlation Between Genovis AB and Generic Sweden

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

By analyzing existing cross correlation between Genovis AB and Generic Sweden publ, you can compare the effects of market volatilities on Genovis AB and Generic Sweden 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 Generic Sweden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and Generic Sweden.

Diversification Opportunities for Genovis AB and Generic Sweden

-0.23

Correlation Coefficient

Genovis AB  Generic Sweden

Very good diversification

The 3 months correlation between Genovis and Generic is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and Generic Sweden publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generic Sweden publ 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 Generic Sweden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generic Sweden publ has no effect on the direction of Genovis AB i.e., Genovis AB and Generic Sweden go up and down completely randomly.

Pair Corralation between Genovis AB and Generic Sweden

Assuming the 90 days trading horizon Genovis AB is expected to generate 1.19 times more return on investment than Generic Sweden. However, Genovis AB is 1.19 times more volatile than Generic Sweden publ. It trades about 0.12 of its potential returns per unit of risk. Generic Sweden publ is currently generating about 0.02 per unit of risk. If you would invest  2,340  in Genovis AB on April 25, 2025 and sell it today you would earn a total of  400.00  from holding Genovis AB or generate 17.09% return on investment over 90 days.

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

Genovis AB  vs.  Generic Sweden publ

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.

Generic Sweden publ

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Generic Sweden publ are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Generic Sweden is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Genovis AB and Generic Sweden

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

The idea behind Genovis AB and Generic Sweden publ 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.