Correlation Between Genetron Holdings and Rushnet

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Genetron Holdings and Rushnet 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 Rushnet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genetron Holdings and Rushnet, you can compare the effects of market volatilities on Genetron Holdings and Rushnet 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 Rushnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetron Holdings and Rushnet.

Diversification Opportunities for Genetron Holdings and Rushnet

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between Genetron and Rushnet is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Genetron Holdings and Rushnet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rushnet 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 Rushnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rushnet has no effect on the direction of Genetron Holdings i.e., Genetron Holdings and Rushnet go up and down completely randomly.

Pair Corralation between Genetron Holdings and Rushnet

If you would invest  0.02  in Rushnet on September 15, 2024 and sell it today you would lose (0.01) from holding Rushnet or give up 50.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy0.4%
ValuesDaily Returns

Genetron Holdings  vs.  Rushnet

 Performance 
       Timeline  
Genetron Holdings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Genetron Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Genetron Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
Rushnet 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Rushnet are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting technical indicators, Rushnet displayed solid returns over the last few months and may actually be approaching a breakup point.

Genetron Holdings and Rushnet Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Genetron Holdings and Rushnet

The main advantage of trading using opposite Genetron Holdings and Rushnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetron Holdings position performs unexpectedly, Rushnet 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 Rushnet will offset losses from the drop in Rushnet's long position.
The idea behind Genetron Holdings and Rushnet 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Other Complementary Tools

Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Money Managers
Screen money managers from public funds and ETFs managed around the world
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Insider Screener
Find insiders across different sectors to evaluate their impact on performance