Correlation Between ProPhase Labs and Genetron Holdings

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

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

Diversification Opportunities for ProPhase Labs and Genetron Holdings

0.0

Correlation Coefficient

ProPhase Labs  Genetron Holdings

Pay attention - limited upside

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

Pair Corralation between ProPhase Labs and Genetron Holdings

If you would invest  26.00  in ProPhase Labs on December 2, 2024 and sell it today you would earn a total of  19.00  from holding ProPhase Labs or generate 73.08% return on investment over 90 days.

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

ProPhase Labs  vs.  Genetron Holdings

ProPhase Labs

Risk-Adjusted Performance

Very Weak

Over the last 90 days ProPhase Labs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Genetron Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genetron Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Genetron Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with ProPhase Labs and Genetron Holdings

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

The idea behind ProPhase Labs and Genetron Holdings 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.