Correlation Between Greenwich Lifesciences and Genprex

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

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

Diversification Opportunities for Greenwich Lifesciences and Genprex

-0.29

Correlation Coefficient

Greenwich Lifesciences  Genprex

Very good diversification

The 3 months correlation between Greenwich and Genprex is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Greenwich Lifesciences and Genprex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genprex and Greenwich Lifesciences 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 Greenwich Lifesciences are associated (or correlated) with Genprex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genprex has no effect on the direction of Greenwich Lifesciences i.e., Greenwich Lifesciences and Genprex go up and down completely randomly.

Pair Corralation between Greenwich Lifesciences and Genprex

Given the investment horizon of 90 days Greenwich Lifesciences is expected to under-perform the Genprex. But the stock apears to be less risky and, when comparing its historical volatility, Greenwich Lifesciences is 12.93 times less risky than Genprex. The stock trades about -0.02 of its potential returns per unit of risk. The Genprex is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  39.00  in Genprex on September 16, 2024 and sell it today you would earn a total of  77.00  from holding Genprex or generate 197.44% return on investment over 90 days.

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

Greenwich Lifesciences  vs.  Genprex

Greenwich Lifesciences

Risk-Adjusted Performance

0 of 100

Very Weak

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

Genprex

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Genprex are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Genprex showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Greenwich Lifesciences and Genprex

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

The idea behind Greenwich Lifesciences and Genprex 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.

Check out your portfolio center.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.