Correlation Between Imd Companies and Genetron Holdings

Can any of the company-specific risk be diversified away by investing in both Imd Companies and Genetron 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 Imd Companies and Genetron Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Imd Companies and Genetron Holdings, you can compare the effects of market volatilities on Imd Companies and Genetron 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 Imd Companies with a short position of Genetron Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imd Companies and Genetron Holdings.

Diversification Opportunities for Imd Companies and Genetron Holdings

0.0

Correlation Coefficient

Imd Companies  Genetron Holdings

Pay attention - limited upside

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

Pair Corralation between Imd Companies and Genetron Holdings

If you would invest (100.00) in Genetron Holdings on December 25, 2024 and sell it today you would earn a total of  100.00  from holding Genetron Holdings 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

Imd Companies  vs.  Genetron Holdings

Imd Companies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Imd Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Genetron Holdings

Risk-Adjusted Performance

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.

Pair Trading with Imd Companies and Genetron Holdings

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

The idea behind Imd Companies and Genetron 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.