Correlation Between Polydex Pharmaceuticals and Genocea Biosciences

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

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

Diversification Opportunities for Polydex Pharmaceuticals and Genocea Biosciences

0.0

Correlation Coefficient

Polydex Pharmaceuticals  Genocea Biosciences

Pay attention - limited upside

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

Pair Corralation between Polydex Pharmaceuticals and Genocea Biosciences

If you would invest (100.00) in Genocea Biosciences on October 7, 2024 and sell it today you would earn a total of  100.00  from holding Genocea Biosciences or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Polydex Pharmaceuticals  vs.  Genocea Biosciences

Polydex Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Polydex Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Polydex Pharmaceuticals is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Genocea Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genocea Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Genocea Biosciences is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Polydex Pharmaceuticals and Genocea Biosciences

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

The idea behind Polydex Pharmaceuticals and Genocea Biosciences 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.