Correlation Between Oncopeptides and Genovis AB

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

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

Diversification Opportunities for Oncopeptides and Genovis AB

-0.51

Correlation Coefficient

Oncopeptides  Genovis AB

Excellent diversification

The 3 months correlation between Oncopeptides and Genovis is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and Genovis AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genovis AB and Oncopeptides 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 Oncopeptides AB are associated (or correlated) with Genovis AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genovis AB has no effect on the direction of Oncopeptides i.e., Oncopeptides and Genovis AB go up and down completely randomly.

Pair Corralation between Oncopeptides and Genovis AB

Assuming the 90 days trading horizon Oncopeptides AB is expected to under-perform the Genovis AB. In addition to that, Oncopeptides is 1.4 times more volatile than Genovis AB. It trades about -0.05 of its total potential returns per unit of risk. Genovis AB is currently generating about -0.01 per unit of volatility. If you would invest  4,520  in Genovis AB on September 25, 2024 and sell it today you would lose (2,065) from holding Genovis AB or give up 45.69% of portfolio value over 90 days.

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

Oncopeptides AB  vs.  Genovis AB

Oncopeptides AB

Risk-Adjusted Performance

0 of 100

Very Weak

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

Genovis AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genovis AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Genovis AB is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Oncopeptides and Genovis AB

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

The idea behind Oncopeptides AB and Genovis AB 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.