Correlation Between Catcher Technology and GeneFerm Biotechnology
Can any of the company-specific risk be diversified away by investing in both Catcher Technology and GeneFerm 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 Catcher Technology and GeneFerm Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catcher Technology Co and GeneFerm Biotechnology Co, you can compare the effects of market volatilities on Catcher Technology and GeneFerm 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 Catcher Technology with a short position of GeneFerm Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcher Technology and GeneFerm Biotechnology.
Diversification Opportunities for Catcher Technology and GeneFerm Biotechnology
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catcher and GeneFerm is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Catcher Technology Co and GeneFerm Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeneFerm Biotechnology and Catcher Technology 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 Catcher Technology Co are associated (or correlated) with GeneFerm Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GeneFerm Biotechnology has no effect on the direction of Catcher Technology i.e., Catcher Technology and GeneFerm Biotechnology go up and down completely randomly.
Pair Corralation between Catcher Technology and GeneFerm Biotechnology
Assuming the 90 days trading horizon Catcher Technology Co is expected to under-perform the GeneFerm Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Catcher Technology Co is 1.98 times less risky than GeneFerm Biotechnology. The stock trades about -0.06 of its potential returns per unit of risk. The GeneFerm Biotechnology Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,760 in GeneFerm Biotechnology Co on July 7, 2024 and sell it today you would earn a total of 40.00 from holding GeneFerm Biotechnology Co or generate 0.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Catcher Technology Co vs. GeneFerm Biotechnology Co
Performance |
Timeline |
Catcher Technology |
GeneFerm Biotechnology |
Catcher Technology and GeneFerm Biotechnology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catcher Technology and GeneFerm Biotechnology
The main advantage of trading using opposite Catcher Technology and GeneFerm Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcher Technology position performs unexpectedly, GeneFerm 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 GeneFerm Biotechnology will offset losses from the drop in GeneFerm Biotechnology's long position.Catcher Technology vs. CyberTAN Technology | Catcher Technology vs. Emerging Display Technologies | Catcher Technology vs. Ruentex Development Co | Catcher Technology vs. Leatec Fine Ceramics |
GeneFerm Biotechnology vs. Center Laboratories | GeneFerm Biotechnology vs. Synmosa Biopharma | GeneFerm Biotechnology vs. Handa Pharmaceuticals |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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