Correlation Between Genomtec and Vercom SA

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

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

Diversification Opportunities for Genomtec and Vercom SA

-0.44

Correlation Coefficient

Genomtec  Vercom SA

Very good diversification

The 3 months correlation between Genomtec and Vercom is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Genomtec SA and Vercom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vercom SA 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 Vercom SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vercom SA has no effect on the direction of Genomtec i.e., Genomtec and Vercom SA go up and down completely randomly.

Pair Corralation between Genomtec and Vercom SA

Assuming the 90 days trading horizon Genomtec SA is expected to under-perform the Vercom SA. In addition to that, Genomtec is 1.29 times more volatile than Vercom SA. It trades about -0.09 of its total potential returns per unit of risk. Vercom SA is currently generating about 0.06 per unit of volatility. If you would invest  11,211  in Vercom SA on April 24, 2025 and sell it today you would earn a total of  769.00  from holding Vercom SA or generate 6.86% return on investment over 90 days.

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

Genomtec SA  vs.  Vercom 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.

Vercom SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Vercom SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Vercom SA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Genomtec and Vercom SA

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

The idea behind Genomtec SA and Vercom 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.