Correlation Between Genomtec and Skarbiec Holding

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

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

Diversification Opportunities for Genomtec and Skarbiec Holding

-0.65

Correlation Coefficient

Genomtec  Skarbiec Holding

Excellent diversification

The 3 months correlation between Genomtec and Skarbiec is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Genomtec SA and Skarbiec Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skarbiec Holding and Genomtec 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 Genomtec SA are associated (or correlated) with Skarbiec Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skarbiec Holding has no effect on the direction of Genomtec i.e., Genomtec and Skarbiec Holding go up and down completely randomly.

Pair Corralation between Genomtec and Skarbiec Holding

Assuming the 90 days trading horizon Genomtec SA is expected to under-perform the Skarbiec Holding. In addition to that, Genomtec is 1.2 times more volatile than Skarbiec Holding SA. It trades about -0.09 of its total potential returns per unit of risk. Skarbiec Holding SA is currently generating about 0.05 per unit of volatility. If you would invest  2,570  in Skarbiec Holding SA on April 24, 2025 and sell it today you would earn a total of  140.00  from holding Skarbiec Holding SA or generate 5.45% return on investment over 90 days.

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

Genomtec SA  vs.  Skarbiec Holding SA

Genomtec SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genomtec SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Skarbiec Holding

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Skarbiec Holding SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Skarbiec Holding may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Genomtec and Skarbiec Holding

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

The idea behind Genomtec SA and Skarbiec Holding SA 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.