Correlation Between Genomma Lab and Entourage Health

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

Diversification Opportunities for Genomma Lab and Entourage Health

0.0

Correlation Coefficient

Genomma Lab  Entourage Health

Pay attention - limited upside

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

Pair Corralation between Genomma Lab and Entourage Health

If you would invest (100.00) in Genomma Lab Internacional on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Genomma Lab Internacional or generate -100.0% 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.  Entourage Health 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.

Entourage Health Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Entourage Health Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Genomma Lab and Entourage Health

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

The idea behind Genomma Lab Internacional and Entourage Health 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.