Correlation Between Viscofan and Oryzon Genomics

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

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

Diversification Opportunities for Viscofan and Oryzon Genomics

0.01

Correlation Coefficient

Viscofan  Oryzon Genomics

Significant diversification

The 3 months correlation between Viscofan and Oryzon is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Viscofan and Oryzon Genomics SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oryzon Genomics SA and Viscofan 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 Viscofan are associated (or correlated) with Oryzon Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oryzon Genomics SA has no effect on the direction of Viscofan i.e., Viscofan and Oryzon Genomics go up and down completely randomly.

Pair Corralation between Viscofan and Oryzon Genomics

Assuming the 90 days trading horizon Viscofan is expected to generate 0.66 times more return on investment than Oryzon Genomics. However, Viscofan is 1.52 times less risky than Oryzon Genomics. It trades about -0.02 of its potential returns per unit of risk. Oryzon Genomics SA is currently generating about -0.13 per unit of risk. If you would invest  6,172  in Viscofan on September 15, 2024 and sell it today you would lose (102.00) from holding Viscofan or give up 1.65% of portfolio value over 90 days.

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

Viscofan  vs.  Oryzon Genomics SA

Viscofan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Viscofan has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Viscofan is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Oryzon Genomics SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oryzon Genomics SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Viscofan and Oryzon Genomics

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

The idea behind Viscofan and Oryzon Genomics SA 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.