Correlation Between Genelux Common and BiOasis Technologies

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

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

Diversification Opportunities for Genelux Common and BiOasis Technologies

-0.14

Correlation Coefficient

Genelux Common  BiOasis Technologies

Good diversification

The 3 months correlation between Genelux and BiOasis is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Genelux Common and biOasis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on biOasis Technologies and Genelux Common 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 Genelux Common are associated (or correlated) with BiOasis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of biOasis Technologies has no effect on the direction of Genelux Common i.e., Genelux Common and BiOasis Technologies go up and down completely randomly.

Pair Corralation between Genelux Common and BiOasis Technologies

Given the investment horizon of 90 days Genelux Common is expected to generate 4.76 times less return on investment than BiOasis Technologies. But when comparing it to its historical volatility, Genelux Common is 5.73 times less risky than BiOasis Technologies. It trades about 0.17 of its potential returns per unit of risk. biOasis Technologies is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  0.01  in biOasis Technologies on December 20, 2024 and sell it today you would earn a total of  0.03  from holding biOasis Technologies or generate 300.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Genelux Common  vs.  biOasis Technologies

Genelux Common

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Genelux Common are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Genelux Common showed solid returns over the last few months and may actually be approaching a breakup point.

biOasis Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in biOasis Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, BiOasis Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genelux Common and BiOasis Technologies

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

The idea behind Genelux Common and biOasis Technologies 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.