Correlation Between Curative Biosciences and Genesis Electronics

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

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

Diversification Opportunities for Curative Biosciences and Genesis Electronics

1.0

Correlation Coefficient

Curative Biosciences  Genesis Electronics

No risk reduction

The 3 months correlation between Curative and Genesis is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Curative Biosciences and Genesis Electronics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Electronics and Curative Biosciences 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 Curative Biosciences are associated (or correlated) with Genesis Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Electronics has no effect on the direction of Curative Biosciences i.e., Curative Biosciences and Genesis Electronics go up and down completely randomly.

Pair Corralation between Curative Biosciences and Genesis Electronics

If you would invest  0.01  in Genesis Electronics Group on September 22, 2024 and sell it today you would earn a total of  0.00  from holding Genesis Electronics Group or generate 0.0% return on investment over 90 days.

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

Curative Biosciences  vs.  Genesis Electronics Group

Curative Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Curative Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Curative Biosciences is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Genesis Electronics

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Curative Biosciences and Genesis Electronics

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

The idea behind Curative Biosciences and Genesis Electronics Group 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.