Correlation Between Genetec Technology and Sanichi Technology
Can any of the company-specific risk be diversified away by investing in both Genetec Technology and Sanichi 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 Genetec Technology and Sanichi Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genetec Technology Bhd and Sanichi Technology Bhd, you can compare the effects of market volatilities on Genetec Technology and Sanichi 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 Genetec Technology with a short position of Sanichi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetec Technology and Sanichi Technology.
Diversification Opportunities for Genetec Technology and Sanichi Technology
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Genetec and Sanichi is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Genetec Technology Bhd and Sanichi Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanichi Technology Bhd and Genetec Technology 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 Genetec Technology Bhd are associated (or correlated) with Sanichi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanichi Technology Bhd has no effect on the direction of Genetec Technology i.e., Genetec Technology and Sanichi Technology go up and down completely randomly.
Pair Corralation between Genetec Technology and Sanichi Technology
Assuming the 90 days trading horizon Genetec Technology Bhd is expected to generate 0.23 times more return on investment than Sanichi Technology. However, Genetec Technology Bhd is 4.4 times less risky than Sanichi Technology. It trades about 0.2 of its potential returns per unit of risk. Sanichi Technology Bhd is currently generating about -0.04 per unit of risk. If you would invest 117.00 in Genetec Technology Bhd on September 28, 2024 and sell it today you would earn a total of 16.00 from holding Genetec Technology Bhd or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genetec Technology Bhd vs. Sanichi Technology Bhd
Performance |
| Timeline |
| Genetec Technology Bhd |
| Sanichi Technology Bhd |
Genetec Technology and Sanichi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetec Technology and Sanichi Technology
The main advantage of trading using opposite Genetec Technology and Sanichi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetec Technology position performs unexpectedly, Sanichi 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 Sanichi Technology will offset losses from the drop in Sanichi Technology's long position.| Genetec Technology vs. Choo Bee Metal | Genetec Technology vs. Senheng New Retail | Genetec Technology vs. Farm Price Holdings | Genetec Technology vs. British American Tobacco |
| Sanichi Technology vs. Greatech Technology Bhd | Sanichi Technology vs. Uwc Bhd | Sanichi Technology vs. Genetec Technology Bhd | Sanichi Technology vs. Dufu Tech Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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