Correlation Between Genscript Biotech and Oxford Nanopore

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

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

Diversification Opportunities for Genscript Biotech and Oxford Nanopore

-0.08

Correlation Coefficient

Genscript Biotech  Oxford Nanopore

Good diversification

The 3 months correlation between Genscript and Oxford is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Genscript Biotech and Oxford Nanopore Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Nanopore Tech and Genscript Biotech 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 Genscript Biotech are associated (or correlated) with Oxford Nanopore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Nanopore Tech has no effect on the direction of Genscript Biotech i.e., Genscript Biotech and Oxford Nanopore go up and down completely randomly.

Pair Corralation between Genscript Biotech and Oxford Nanopore

Assuming the 90 days horizon Genscript Biotech is expected to under-perform the Oxford Nanopore. But the pink sheet apears to be less risky and, when comparing its historical volatility, Genscript Biotech is 1.08 times less risky than Oxford Nanopore. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Oxford Nanopore Technologies is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  291.00  in Oxford Nanopore Technologies on September 16, 2024 and sell it today you would lose (95.00) from holding Oxford Nanopore Technologies or give up 32.65% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Genscript Biotech  vs.  Oxford Nanopore Technologies

Genscript Biotech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genscript Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Oxford Nanopore Tech

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Oxford Nanopore Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Oxford Nanopore may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Genscript Biotech and Oxford Nanopore

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

The idea behind Genscript Biotech and Oxford Nanopore Technologies 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.