Correlation Between Genomma Lab and Benchmark Botanics

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

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

Diversification Opportunities for Genomma Lab and Benchmark Botanics

0.0

Correlation Coefficient

Genomma Lab  Benchmark Botanics

Pay attention - limited upside

The 3 months correlation between Genomma and Benchmark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genomma Lab Internacional and Benchmark Botanics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Botanics and Genomma Lab 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 Genomma Lab Internacional are associated (or correlated) with Benchmark Botanics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Botanics has no effect on the direction of Genomma Lab i.e., Genomma Lab and Benchmark Botanics go up and down completely randomly.

Pair Corralation between Genomma Lab and Benchmark Botanics

If you would invest  98.00  in Genomma Lab Internacional on September 3, 2024 and sell it today you would earn a total of  29.00  from holding Genomma Lab Internacional or generate 29.59% return on investment over 90 days.

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

Genomma Lab Internacional  vs.  Benchmark Botanics

Genomma Lab Internacional

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Genomma Lab Internacional are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Genomma Lab reported solid returns over the last few months and may actually be approaching a breakup point.

Benchmark Botanics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Benchmark Botanics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Benchmark Botanics is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Genomma Lab and Benchmark Botanics

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

The idea behind Genomma Lab Internacional and Benchmark Botanics 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.