Correlation Between GLYC Old and Generation Bio

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

By analyzing existing cross correlation between GLYC Old and Generation Bio Co, you can compare the effects of market volatilities on GLYC Old and Generation Bio 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 GLYC Old with a short position of Generation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLYC Old and Generation Bio.

Diversification Opportunities for GLYC Old and Generation Bio

0.33

Correlation Coefficient

GLYC Old  Generation Bio

Weak diversification

The 3 months correlation between GLYC and Generation is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding GLYC Old and Generation Bio Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Bio and GLYC Old 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 GLYC Old are associated (or correlated) with Generation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Bio has no effect on the direction of GLYC Old i.e., GLYC Old and Generation Bio go up and down completely randomly.

Pair Corralation between GLYC Old and Generation Bio

Given the investment horizon of 90 days GLYC Old is expected to generate 24.22 times more return on investment than Generation Bio. However, GLYC Old is 24.22 times more volatile than Generation Bio Co. It trades about 0.16 of its potential returns per unit of risk. Generation Bio Co is currently generating about 0.04 per unit of risk. If you would invest  27.00  in GLYC Old on May 5, 2025 and sell it today you would lose (11.00) from holding GLYC Old or give up 40.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	47.62%
Values	Daily Returns

GLYC Old  vs.  Generation Bio Co

GLYC Old

Risk-Adjusted Performance

Good

Over the last 90 days GLYC Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather uncertain basic indicators, GLYC Old exhibited solid returns over the last few months and may actually be approaching a breakup point.

Generation Bio

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Generation Bio Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady forward indicators, Generation Bio displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GLYC Old and Generation Bio

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

The idea behind GLYC Old and Generation Bio Co 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.