Correlation Between Nutriband and Generation Bio

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

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

Diversification Opportunities for Nutriband and Generation Bio

-0.69

Correlation Coefficient

Nutriband  Generation Bio

Excellent diversification

The 3 months correlation between Nutriband and Generation is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nutriband and Generation Bio Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Bio and Nutriband 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 Nutriband are associated (or correlated) with Generation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Bio has no effect on the direction of Nutriband i.e., Nutriband and Generation Bio go up and down completely randomly.

Pair Corralation between Nutriband and Generation Bio

Given the investment horizon of 90 days Nutriband is expected to generate 2.26 times more return on investment than Generation Bio. However, Nutriband is 2.26 times more volatile than Generation Bio Co. It trades about 0.12 of its potential returns per unit of risk. Generation Bio Co is currently generating about -0.33 per unit of risk. If you would invest  455.00  in Nutriband on December 1, 2024 and sell it today you would earn a total of  272.00  from holding Nutriband or generate 59.78% return on investment over 90 days.

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

Nutriband  vs.  Generation Bio Co

Nutriband

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nutriband are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Nutriband sustained solid returns over the last few months and may actually be approaching a breakup point.

Generation Bio

Risk-Adjusted Performance

Very Weak

Over the last 90 days Generation Bio Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Nutriband and Generation Bio

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

The idea behind Nutriband and Generation Bio Co 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.