Correlation Between Posiflex Technology and Energenesis Biomedical

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

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

Diversification Opportunities for Posiflex Technology and Energenesis Biomedical

-0.4

Correlation Coefficient

Posiflex Technology  Energenesis Biomedical

Very good diversification

The 3 months correlation between Posiflex and Energenesis is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Posiflex Technology and Energenesis Biomedical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energenesis Biomedical and Posiflex Technology 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 Posiflex Technology are associated (or correlated) with Energenesis Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energenesis Biomedical has no effect on the direction of Posiflex Technology i.e., Posiflex Technology and Energenesis Biomedical go up and down completely randomly.

Pair Corralation between Posiflex Technology and Energenesis Biomedical

Assuming the 90 days trading horizon Posiflex Technology is expected to generate 1.18 times more return on investment than Energenesis Biomedical. However, Posiflex Technology is 1.18 times more volatile than Energenesis Biomedical Co. It trades about 0.15 of its potential returns per unit of risk. Energenesis Biomedical Co is currently generating about 0.04 per unit of risk. If you would invest  11,650  in Posiflex Technology on December 4, 2024 and sell it today you would earn a total of  17,250  from holding Posiflex Technology or generate 148.07% return on investment over 90 days.

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

Posiflex Technology  vs.  Energenesis Biomedical Co

Posiflex Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Posiflex Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Energenesis Biomedical

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Energenesis Biomedical Co are ranked lower than 7 (%) 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.

Pair Trading with Posiflex Technology and Energenesis Biomedical

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

The idea behind Posiflex Technology and Energenesis Biomedical Co 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.