Correlation Between Genelux Common and Revelation Biosciences

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

By analyzing existing cross correlation between Genelux Common and Revelation Biosciences, you can compare the effects of market volatilities on Genelux Common and Revelation Biosciences 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 Revelation Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genelux Common and Revelation Biosciences.

Diversification Opportunities for Genelux Common and Revelation Biosciences

0.57

Correlation Coefficient

Genelux Common  Revelation Biosciences

Very weak diversification

The 3 months correlation between Genelux and Revelation is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Genelux Common and Revelation Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revelation Biosciences 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 Revelation Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revelation Biosciences has no effect on the direction of Genelux Common i.e., Genelux Common and Revelation Biosciences go up and down completely randomly.

Pair Corralation between Genelux Common and Revelation Biosciences

Given the investment horizon of 90 days Genelux Common is expected to generate 0.81 times more return on investment than Revelation Biosciences. However, Genelux Common is 1.23 times less risky than Revelation Biosciences. It trades about 0.01 of its potential returns per unit of risk. Revelation Biosciences is currently generating about -0.08 per unit of risk. If you would invest  615.00  in Genelux Common on October 10, 2024 and sell it today you would lose (360.00) from holding Genelux Common or give up 58.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.99%
Values	Daily Returns

Genelux Common  vs.  Revelation Biosciences

Genelux Common

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Genelux Common are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Genelux Common may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Revelation Biosciences

Risk-Adjusted Performance

0 of 100

Weak

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

Pair Trading with Genelux Common and Revelation Biosciences

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

The idea behind Genelux Common and Revelation Biosciences 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..