Correlation Between Genetron Holdings and Lixiang Education
Can any of the company-specific risk be diversified away by investing in both Genetron Holdings and Lixiang Education 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 Genetron Holdings and Lixiang Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genetron Holdings and Lixiang Education Holding, you can compare the effects of market volatilities on Genetron Holdings and Lixiang Education 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 Genetron Holdings with a short position of Lixiang Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetron Holdings and Lixiang Education.
Diversification Opportunities for Genetron Holdings and Lixiang Education
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genetron and Lixiang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genetron Holdings and Lixiang Education Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixiang Education Holding and Genetron Holdings 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 Genetron Holdings are associated (or correlated) with Lixiang Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixiang Education Holding has no effect on the direction of Genetron Holdings i.e., Genetron Holdings and Lixiang Education go up and down completely randomly.
Pair Corralation between Genetron Holdings and Lixiang Education
If you would invest 472.00 in Lixiang Education Holding on December 29, 2024 and sell it today you would earn a total of 861.00 from holding Lixiang Education Holding or generate 182.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Genetron Holdings vs. Lixiang Education Holding
Performance |
Timeline |
Genetron Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Lixiang Education Holding |
Genetron Holdings and Lixiang Education Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genetron Holdings and Lixiang Education
The main advantage of trading using opposite Genetron Holdings and Lixiang Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetron Holdings position performs unexpectedly, Lixiang Education 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 Lixiang Education will offset losses from the drop in Lixiang Education's long position.Genetron Holdings vs. Sera Prognostics | Genetron Holdings vs. DarioHealth Corp | Genetron Holdings vs. Biodesix | Genetron Holdings vs. Aclaris Therapeutics |
Lixiang Education vs. China Liberal Education | Lixiang Education vs. Four Seasons Education | Lixiang Education vs. Jianzhi Education Technology | Lixiang Education vs. Elite Education Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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