Correlation Between Genovis AB and Isofol Medical
Can any of the company-specific risk be diversified away by investing in both Genovis AB and Isofol Medical 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 Isofol Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovis AB and Isofol Medical AB, you can compare the effects of market volatilities on Genovis AB and Isofol Medical 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 Isofol Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and Isofol Medical.
Diversification Opportunities for Genovis AB and Isofol Medical
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genovis and Isofol is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and Isofol Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isofol Medical 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 Isofol Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isofol Medical AB has no effect on the direction of Genovis AB i.e., Genovis AB and Isofol Medical go up and down completely randomly.
Pair Corralation between Genovis AB and Isofol Medical
Assuming the 90 days trading horizon Genovis AB is expected to generate 0.41 times more return on investment than Isofol Medical. However, Genovis AB is 2.46 times less risky than Isofol Medical. It trades about 0.1 of its potential returns per unit of risk. Isofol Medical AB is currently generating about -0.15 per unit of risk. 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 Against |
Strength | Significant |
Accuracy | 98.36% |
Values | Daily Returns |
Genovis AB vs. Isofol Medical AB
Performance |
Timeline |
Genovis AB |
Isofol Medical AB |
Genovis AB and Isofol Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genovis AB and Isofol Medical
The main advantage of trading using opposite Genovis AB and Isofol Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, Isofol Medical 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 Isofol Medical will offset losses from the drop in Isofol Medical's long position.Genovis AB vs. Xbrane Biopharma AB | Genovis AB vs. Hansa Biopharma AB | Genovis AB vs. Cantargia AB | Genovis AB vs. Vicore Pharma Holding |
Isofol Medical vs. Infant Bacterial Therapeutics | Isofol Medical vs. Lipigon Pharmaceuticals AB | Isofol Medical vs. XSpray Pharma AB | Isofol Medical vs. Biovica International AB |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |