Correlation Between Igene Biotechnology and KS AG

Can any of the company-specific risk be diversified away by investing in both Igene Biotechnology and KS AG 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 Igene Biotechnology and KS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Igene Biotechnology and KS AG DRC, you can compare the effects of market volatilities on Igene Biotechnology and KS AG 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 Igene Biotechnology with a short position of KS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Igene Biotechnology and KS AG.

Diversification Opportunities for Igene Biotechnology and KS AG

0.0

Correlation Coefficient

Igene Biotechnology  KS AG

Pay attention - limited upside

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

Pair Corralation between Igene Biotechnology and KS AG

If you would invest  0.00  in Igene Biotechnology on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Igene Biotechnology or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

Igene Biotechnology  vs.  KS AG DRC

Igene Biotechnology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Igene Biotechnology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Igene Biotechnology is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

KS AG DRC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KS AG DRC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Igene Biotechnology and KS AG

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

The idea behind Igene Biotechnology and KS AG DRC 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.