Correlation Between Genelux Common and Fennec Pharmaceuticals

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Genelux Common and Fennec Pharmaceuticals 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 Genelux Common and Fennec Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genelux Common and Fennec Pharmaceuticals, you can compare the effects of market volatilities on Genelux Common and Fennec Pharmaceuticals 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 Genelux Common with a short position of Fennec Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genelux Common and Fennec Pharmaceuticals.

Diversification Opportunities for Genelux Common and Fennec Pharmaceuticals

-0.24
  Correlation Coefficient

Very good diversification

The 3 months correlation between Genelux and Fennec is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Genelux Common and Fennec Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fennec Pharmaceuticals and Genelux Common 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 Genelux Common are associated (or correlated) with Fennec Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fennec Pharmaceuticals has no effect on the direction of Genelux Common i.e., Genelux Common and Fennec Pharmaceuticals go up and down completely randomly.

Pair Corralation between Genelux Common and Fennec Pharmaceuticals

Given the investment horizon of 90 days Genelux Common is expected to generate 1.46 times less return on investment than Fennec Pharmaceuticals. In addition to that, Genelux Common is 1.36 times more volatile than Fennec Pharmaceuticals. It trades about 0.04 of its total potential returns per unit of risk. Fennec Pharmaceuticals is currently generating about 0.07 per unit of volatility. If you would invest  537.00  in Fennec Pharmaceuticals on September 5, 2024 and sell it today you would earn a total of  86.00  from holding Fennec Pharmaceuticals or generate 16.01% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Genelux Common  vs.  Fennec Pharmaceuticals

 Performance 
       Timeline  
Genelux Common 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Genelux Common are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, Genelux Common showed solid returns over the last few months and may actually be approaching a breakup point.
Fennec Pharmaceuticals 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Fennec Pharmaceuticals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Fennec Pharmaceuticals exhibited solid returns over the last few months and may actually be approaching a breakup point.

Genelux Common and Fennec Pharmaceuticals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Genelux Common and Fennec Pharmaceuticals

The main advantage of trading using opposite Genelux Common and Fennec Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genelux Common position performs unexpectedly, Fennec Pharmaceuticals 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 Fennec Pharmaceuticals will offset losses from the drop in Fennec Pharmaceuticals' long position.
The idea behind Genelux Common and Fennec Pharmaceuticals 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings