Correlation Between Gemini Group and Fortress Biotech

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

By analyzing existing cross correlation between Gemini Group Global and Fortress Biotech Pref, you can compare the effects of market volatilities on Gemini Group and Fortress 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 Gemini Group with a short position of Fortress Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemini Group and Fortress Biotech.

Diversification Opportunities for Gemini Group and Fortress Biotech

-0.39

Correlation Coefficient

Gemini Group  Fortress Biotech

Very good diversification

The 3 months correlation between Gemini and Fortress is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Gemini Group Global and Fortress Biotech Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Biotech Pref and Gemini Group 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 Gemini Group Global are associated (or correlated) with Fortress Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Biotech Pref has no effect on the direction of Gemini Group i.e., Gemini Group and Fortress Biotech go up and down completely randomly.

Pair Corralation between Gemini Group and Fortress Biotech

If you would invest  0.35  in Gemini Group Global on June 24, 2024 and sell it today you would earn a total of  0.00  from holding Gemini Group Global or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Gemini Group Global  vs.  Fortress Biotech Pref

Gemini Group Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gemini Group Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Gemini Group is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Fortress Biotech Pref

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fortress Biotech Pref has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Preferred Stock's basic indicators remain relatively invariable which may send shares a bit higher in October 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Gemini Group and Fortress Biotech

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

The idea behind Gemini Group Global and Fortress Biotech Pref 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.