Correlation Between Genomma Lab and City View

Can any of the company-specific risk be diversified away by investing in both Genomma Lab and City View 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 City View 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 City View Green, you can compare the effects of market volatilities on Genomma Lab and City View 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 City View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genomma Lab and City View.

Diversification Opportunities for Genomma Lab and City View

0.0

Correlation Coefficient

Genomma Lab  City View

Pay attention - limited upside

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

Pair Corralation between Genomma Lab and City View

If you would invest  0.33  in City View Green on December 29, 2024 and sell it today you would earn a total of  0.05  from holding City View Green or generate 15.15% return on investment over 90 days.

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

Genomma Lab Internacional  vs.  City View Green

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.

City View Green

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in City View Green are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, City View reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genomma Lab and City View

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

The idea behind Genomma Lab Internacional and City View Green 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.