Correlation Between Genomma Lab and CanaQuest Medical

Can any of the company-specific risk be diversified away by investing in both Genomma Lab and CanaQuest Medical 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 Genomma Lab and CanaQuest Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Genomma Lab Internacional and CanaQuest Medical Corp, you can compare the effects of market volatilities on Genomma Lab and CanaQuest Medical 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 Genomma Lab with a short position of CanaQuest Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genomma Lab and CanaQuest Medical.

Diversification Opportunities for Genomma Lab and CanaQuest Medical

0.0

Correlation Coefficient

Genomma Lab  CanaQuest Medical

Pay attention - limited upside

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

Pair Corralation between Genomma Lab and CanaQuest Medical

If you would invest  2.00  in CanaQuest Medical Corp on December 30, 2024 and sell it today you would lose (0.12) from holding CanaQuest Medical Corp or give up 6.0% of portfolio value over 90 days.

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

Genomma Lab Internacional  vs.  CanaQuest Medical Corp

Genomma Lab Internacional

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genomma Lab Internacional has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Genomma Lab is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

CanaQuest Medical Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CanaQuest Medical Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CanaQuest Medical reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genomma Lab and CanaQuest Medical

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

The idea behind Genomma Lab Internacional and CanaQuest Medical Corp 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.