Correlation Between Genscript Biotech and Telix Pharmaceuticals

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

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

Diversification Opportunities for Genscript Biotech and Telix Pharmaceuticals

-0.49

Correlation Coefficient

Genscript Biotech  Telix Pharmaceuticals

Very good diversification

The 3 months correlation between Genscript and Telix is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Genscript Biotech and Telix Pharmaceuticals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telix Pharmaceuticals and Genscript Biotech 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 Genscript Biotech are associated (or correlated) with Telix Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telix Pharmaceuticals has no effect on the direction of Genscript Biotech i.e., Genscript Biotech and Telix Pharmaceuticals go up and down completely randomly.

Pair Corralation between Genscript Biotech and Telix Pharmaceuticals

Assuming the 90 days horizon Genscript Biotech is expected to generate 0.86 times more return on investment than Telix Pharmaceuticals. However, Genscript Biotech is 1.17 times less risky than Telix Pharmaceuticals. It trades about 0.03 of its potential returns per unit of risk. Telix Pharmaceuticals Limited is currently generating about -0.07 per unit of risk. If you would invest  220.00  in Genscript Biotech on June 29, 2025 and sell it today you would earn a total of  5.00  from holding Genscript Biotech or generate 2.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.92%
Values	Daily Returns

Genscript Biotech  vs.  Telix Pharmaceuticals Limited

Genscript Biotech

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Genscript Biotech are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Genscript Biotech may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Telix Pharmaceuticals

Risk-Adjusted Performance

Weakest

Over the last 90 days Telix Pharmaceuticals Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in October 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Genscript Biotech and Telix Pharmaceuticals

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

The idea behind Genscript Biotech and Telix Pharmaceuticals Limited 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.