Correlation Between Procyon and Genomma Lab

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

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

Diversification Opportunities for Procyon and Genomma Lab

-0.03

Correlation Coefficient

Procyon  Genomma Lab

Good diversification

The 3 months correlation between Procyon and Genomma is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Procyon and Genomma Lab Internacional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genomma Lab Internacional and Procyon 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 Procyon are associated (or correlated) with Genomma Lab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genomma Lab Internacional has no effect on the direction of Procyon i.e., Procyon and Genomma Lab go up and down completely randomly.

Pair Corralation between Procyon and Genomma Lab

If you would invest  127.00  in Genomma Lab Internacional on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Genomma Lab Internacional or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	35.0%
Values	Daily Returns

Procyon  vs.  Genomma Lab Internacional

Procyon

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Procyon 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 basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Genomma Lab Internacional

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Genomma Lab Internacional has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile essential indicators, Genomma Lab reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Procyon and Genomma Lab

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

The idea behind Procyon and Genomma Lab Internacional 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.