Correlation Between Gensight Biologics and Gaussin

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

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

Diversification Opportunities for Gensight Biologics and Gaussin

-0.18

Correlation Coefficient

Gensight Biologics  Gaussin

Good diversification

The 3 months correlation between Gensight and Gaussin is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Gensight Biologics SA and Gaussin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaussin and Gensight Biologics 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 Gensight Biologics SA are associated (or correlated) with Gaussin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaussin has no effect on the direction of Gensight Biologics i.e., Gensight Biologics and Gaussin go up and down completely randomly.

Pair Corralation between Gensight Biologics and Gaussin

If you would invest  11.00  in Gaussin on December 2, 2024 and sell it today you would earn a total of  0.00  from holding Gaussin or generate 0.0% return on investment over 90 days.

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

Gensight Biologics SA  vs.  Gaussin

Gensight Biologics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gensight Biologics SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Gaussin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gaussin has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Gaussin 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 Gensight Biologics and Gaussin

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

The idea behind Gensight Biologics SA and Gaussin 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.