Correlation Between Bio Works and Genovis AB

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

By analyzing existing cross correlation between Bio Works Technologies AB and Genovis AB, you can compare the effects of market volatilities on Bio Works and Genovis AB 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 Bio Works with a short position of Genovis AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Works and Genovis AB.

Diversification Opportunities for Bio Works and Genovis AB

0.0

Correlation Coefficient

Bio Works  Genovis AB

Pay attention - limited upside

The 3 months correlation between Bio and Genovis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bio Works Technologies AB and Genovis AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genovis AB and Bio Works 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 Bio Works Technologies AB are associated (or correlated) with Genovis AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genovis AB has no effect on the direction of Bio Works i.e., Bio Works and Genovis AB go up and down completely randomly.

Pair Corralation between Bio Works and Genovis AB

If you would invest (100.00) in Genovis AB on October 4, 2024 and sell it today you would earn a total of  100.00  from holding Genovis AB or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bio Works Technologies AB  vs.  Genovis AB

Bio Works Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bio Works Technologies AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Bio Works is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Genovis AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genovis AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Genovis AB is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Bio Works and Genovis AB

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

The idea behind Bio Works Technologies AB and Genovis AB 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.