Correlation Between Energenesis Biomedical and Great Computer

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

By analyzing existing cross correlation between Energenesis Biomedical Co and Great Computer, you can compare the effects of market volatilities on Energenesis Biomedical and Great Computer 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 Energenesis Biomedical with a short position of Great Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energenesis Biomedical and Great Computer.

Diversification Opportunities for Energenesis Biomedical and Great Computer

-0.48

Correlation Coefficient

Energenesis Biomedical  Great Computer

Very good diversification

The 3 months correlation between Energenesis and Great is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Energenesis Biomedical Co and Great Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Computer and Energenesis Biomedical 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 Energenesis Biomedical Co are associated (or correlated) with Great Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Computer has no effect on the direction of Energenesis Biomedical i.e., Energenesis Biomedical and Great Computer go up and down completely randomly.

Pair Corralation between Energenesis Biomedical and Great Computer

Assuming the 90 days trading horizon Energenesis Biomedical Co is expected to generate 1.18 times more return on investment than Great Computer. However, Energenesis Biomedical is 1.18 times more volatile than Great Computer. It trades about 0.21 of its potential returns per unit of risk. Great Computer is currently generating about -0.13 per unit of risk. If you would invest  5,100  in Energenesis Biomedical Co on December 24, 2024 and sell it today you would earn a total of  2,420  from holding Energenesis Biomedical Co or generate 47.45% return on investment over 90 days.

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

Energenesis Biomedical Co  vs.  Great Computer

Energenesis Biomedical

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Energenesis Biomedical Co are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Energenesis Biomedical showed solid returns over the last few months and may actually be approaching a breakup point.

Great Computer

Risk-Adjusted Performance

Very Weak

Over the last 90 days Great Computer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Energenesis Biomedical and Great Computer

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

The idea behind Energenesis Biomedical Co and Great Computer 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.