Correlation Between Genomma Lab and Molecule Holdings

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

Diversification Opportunities for Genomma Lab and Molecule Holdings

0.0

Correlation Coefficient

Genomma Lab  Molecule Holdings

Pay attention - limited upside

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

Pair Corralation between Genomma Lab and Molecule Holdings

If you would invest  0.25  in Molecule Holdings on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Molecule Holdings or generate 0.0% 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.  Molecule Holdings

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.

Molecule Holdings

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Genomma Lab and Molecule Holdings

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

The idea behind Genomma Lab Internacional and Molecule Holdings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.