Correlation Between Genenta Science and Horizon Kinetics

Can any of the company-specific risk be diversified away by investing in both Genenta Science and Horizon Kinetics 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 Genenta Science and Horizon Kinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Genenta Science SpA and Horizon Kinetics Medical, you can compare the effects of market volatilities on Genenta Science and Horizon Kinetics 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 Genenta Science with a short position of Horizon Kinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genenta Science and Horizon Kinetics.

Diversification Opportunities for Genenta Science and Horizon Kinetics

-0.34

Correlation Coefficient

Genenta Science  Horizon Kinetics

Very good diversification

The 3 months correlation between Genenta and Horizon is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Genenta Science SpA and Horizon Kinetics Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics Medical and Genenta Science 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 Genenta Science SpA are associated (or correlated) with Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics Medical has no effect on the direction of Genenta Science i.e., Genenta Science and Horizon Kinetics go up and down completely randomly.

Pair Corralation between Genenta Science and Horizon Kinetics

Given the investment horizon of 90 days Genenta Science SpA is expected to generate 7.84 times more return on investment than Horizon Kinetics. However, Genenta Science is 7.84 times more volatile than Horizon Kinetics Medical. It trades about 0.05 of its potential returns per unit of risk. Horizon Kinetics Medical is currently generating about -0.14 per unit of risk. If you would invest  477.00  in Genenta Science SpA on September 5, 2024 and sell it today you would earn a total of  35.00  from holding Genenta Science SpA or generate 7.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Genenta Science SpA  vs.  Horizon Kinetics Medical

Genenta Science SpA

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Genenta Science SpA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Genenta Science sustained solid returns over the last few months and may actually be approaching a breakup point.

Horizon Kinetics Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Horizon Kinetics Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Etf's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Pair Trading with Genenta Science and Horizon Kinetics

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

The idea behind Genenta Science SpA and Horizon Kinetics Medical 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.