Correlation Between Genelux Common and Puma Biotechnology

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

Diversification Opportunities for Genelux Common and Puma Biotechnology

0.5
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Genelux and Puma is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Genelux Common and Puma Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puma Biotechnology 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 Puma Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puma Biotechnology has no effect on the direction of Genelux Common i.e., Genelux Common and Puma Biotechnology go up and down completely randomly.

Pair Corralation between Genelux Common and Puma Biotechnology

Given the investment horizon of 90 days Genelux Common is expected to under-perform the Puma Biotechnology. In addition to that, Genelux Common is 1.23 times more volatile than Puma Biotechnology. It trades about -0.13 of its total potential returns per unit of risk. Puma Biotechnology is currently generating about 0.13 per unit of volatility. If you would invest  274.00  in Puma Biotechnology on September 18, 2024 and sell it today you would earn a total of  22.00  from holding Puma Biotechnology or generate 8.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.24%
ValuesDaily Returns

Genelux Common  vs.  Puma Biotechnology

 Performance 
       Timeline  
Genelux Common 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Genelux Common are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, Genelux Common is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
Puma Biotechnology 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Puma Biotechnology are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Puma Biotechnology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Genelux Common and Puma Biotechnology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Genelux Common and Puma Biotechnology

The main advantage of trading using opposite Genelux Common and Puma Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genelux Common position performs unexpectedly, Puma Biotechnology 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 Puma Biotechnology will offset losses from the drop in Puma Biotechnology's long position.
The idea behind Genelux Common and Puma Biotechnology 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments