Correlation Between Gemina Laboratories and Endexx Corp

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

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

Diversification Opportunities for Gemina Laboratories and Endexx Corp

-0.33

Correlation Coefficient

Gemina Laboratories  Endexx Corp

Very good diversification

The 3 months correlation between Gemina and Endexx is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Gemina Laboratories and Endexx Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endexx Corp and Gemina Laboratories 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 Gemina Laboratories are associated (or correlated) with Endexx Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endexx Corp has no effect on the direction of Gemina Laboratories i.e., Gemina Laboratories and Endexx Corp go up and down completely randomly.

Pair Corralation between Gemina Laboratories and Endexx Corp

Assuming the 90 days horizon Gemina Laboratories is expected to generate 0.84 times more return on investment than Endexx Corp. However, Gemina Laboratories is 1.19 times less risky than Endexx Corp. It trades about 0.16 of its potential returns per unit of risk. Endexx Corp is currently generating about -0.02 per unit of risk. If you would invest  31.00  in Gemina Laboratories on September 1, 2024 and sell it today you would earn a total of  24.00  from holding Gemina Laboratories or generate 77.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Gemina Laboratories  vs.  Endexx Corp

Gemina Laboratories

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gemina Laboratories are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating fundamental drivers, Gemina Laboratories reported solid returns over the last few months and may actually be approaching a breakup point.

Endexx Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Endexx Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Gemina Laboratories and Endexx Corp

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

The idea behind Gemina Laboratories and Endexx Corp 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.