Correlation Between Laboratory and NewGenIvf Group

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

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

Diversification Opportunities for Laboratory and NewGenIvf Group

-0.52

Correlation Coefficient

Laboratory  NewGenIvf Group

Excellent diversification

The 3 months correlation between Laboratory and NewGenIvf is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Laboratory of and NewGenIvf Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewGenIvf Group and Laboratory 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 Laboratory of are associated (or correlated) with NewGenIvf Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewGenIvf Group has no effect on the direction of Laboratory i.e., Laboratory and NewGenIvf Group go up and down completely randomly.

Pair Corralation between Laboratory and NewGenIvf Group

Allowing for the 90-day total investment horizon Laboratory is expected to generate 5.57 times less return on investment than NewGenIvf Group. But when comparing it to its historical volatility, Laboratory of is 18.52 times less risky than NewGenIvf Group. It trades about 0.1 of its potential returns per unit of risk. NewGenIvf Group Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  70.00  in NewGenIvf Group Limited on September 12, 2024 and sell it today you would lose (31.00) from holding NewGenIvf Group Limited or give up 44.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Laboratory of  vs.  NewGenIvf Group Limited

Laboratory

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Laboratory of are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Laboratory may actually be approaching a critical reversion point that can send shares even higher in January 2025.

NewGenIvf Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NewGenIvf Group Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, NewGenIvf Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Laboratory and NewGenIvf Group

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

The idea behind Laboratory of and NewGenIvf Group Limited 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.