Correlation Between Genelux Common and Naas Technology
Can any of the company-specific risk be diversified away by investing in both Genelux Common and Naas Technology 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 Naas Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genelux Common and Naas Technology ADR, you can compare the effects of market volatilities on Genelux Common and Naas Technology 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 Naas Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genelux Common and Naas Technology.
Diversification Opportunities for Genelux Common and Naas Technology
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genelux and Naas is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Genelux Common and Naas Technology ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naas Technology ADR 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 Naas Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naas Technology ADR has no effect on the direction of Genelux Common i.e., Genelux Common and Naas Technology go up and down completely randomly.
Pair Corralation between Genelux Common and Naas Technology
Given the investment horizon of 90 days Genelux Common is expected to generate 0.49 times more return on investment than Naas Technology. However, Genelux Common is 2.06 times less risky than Naas Technology. It trades about -0.17 of its potential returns per unit of risk. Naas Technology ADR is currently generating about -0.12 per unit of risk. If you would invest 746.00 in Genelux Common on December 30, 2023 and sell it today you would lose (103.00) from holding Genelux Common or give up 13.81% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Genelux Common vs. Naas Technology ADR
Performance |
Timeline |
Genelux Common |
Naas Technology ADR |
Genelux Common and Naas Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genelux Common and Naas Technology
The main advantage of trading using opposite Genelux Common and Naas Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genelux Common position performs unexpectedly, Naas Technology 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 Naas Technology will offset losses from the drop in Naas Technology's long position.Genelux Common vs. Ryanair Holdings PLC | Genelux Common vs. Siriuspoint | Genelux Common vs. Omni Financial Services | Genelux Common vs. Grupo Aeroportuario Del |
Naas Technology vs. Mattel Inc | Naas Technology vs. Planet Fitness | Naas Technology vs. Playa Hotels Resorts | Naas Technology vs. NETGEAR |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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