Correlation Between COFCO Joycome and Genscript Biotech

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

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

Diversification Opportunities for COFCO Joycome and Genscript Biotech

0.48

Correlation Coefficient

COFCO Joycome  Genscript Biotech

Very weak diversification

The 3 months correlation between COFCO and Genscript is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Genscript Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genscript Biotech and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with Genscript Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genscript Biotech has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Genscript Biotech go up and down completely randomly.

Pair Corralation between COFCO Joycome and Genscript Biotech

Assuming the 90 days horizon COFCO Joycome is expected to generate 2.15 times less return on investment than Genscript Biotech. In addition to that, COFCO Joycome is 1.25 times more volatile than Genscript Biotech. It trades about 0.04 of its total potential returns per unit of risk. Genscript Biotech is currently generating about 0.11 per unit of volatility. If you would invest  155.00  in Genscript Biotech on July 6, 2025 and sell it today you would earn a total of  29.00  from holding Genscript Biotech or generate 18.71% return on investment over 90 days.

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

COFCO Joycome Foods  vs.  Genscript Biotech

COFCO Joycome Foods

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in COFCO Joycome Foods are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, COFCO Joycome may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Genscript Biotech

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Genscript Biotech are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Genscript Biotech reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with COFCO Joycome and Genscript Biotech

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

The idea behind COFCO Joycome Foods and Genscript Biotech 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.