Correlation Between Genovis AB and BICO Group

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

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

Diversification Opportunities for Genovis AB and BICO Group

0.03

Correlation Coefficient

Genovis AB  BICO Group

Significant diversification

The 3 months correlation between Genovis and BICO is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and BICO Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BICO Group AB and Genovis AB 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 Genovis AB are associated (or correlated) with BICO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BICO Group AB has no effect on the direction of Genovis AB i.e., Genovis AB and BICO Group go up and down completely randomly.

Pair Corralation between Genovis AB and BICO Group

Assuming the 90 days trading horizon Genovis AB is expected to under-perform the BICO Group. In addition to that, Genovis AB is 1.04 times more volatile than BICO Group AB. It trades about -0.07 of its total potential returns per unit of risk. BICO Group AB is currently generating about 0.02 per unit of volatility. If you would invest  3,202  in BICO Group AB on December 30, 2024 and sell it today you would lose (12.00) from holding BICO Group AB or give up 0.37% of portfolio value over 90 days.

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

Genovis AB  vs.  BICO Group AB

Genovis AB

Risk-Adjusted Performance

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

BICO Group AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BICO Group AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, BICO Group is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Genovis AB and BICO Group

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

The idea behind Genovis AB and BICO Group 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.