Correlation Between Genetec Technology and OSK Holdings
Can any of the company-specific risk be diversified away by investing in both Genetec Technology and OSK Holdings 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 OSK Holdings 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 OSK Holdings Bhd, you can compare the effects of market volatilities on Genetec Technology and OSK Holdings 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 OSK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetec Technology and OSK Holdings.
Diversification Opportunities for Genetec Technology and OSK Holdings
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genetec and OSK is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Genetec Technology Bhd and OSK Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSK Holdings 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 OSK Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSK Holdings Bhd has no effect on the direction of Genetec Technology i.e., Genetec Technology and OSK Holdings go up and down completely randomly.
Pair Corralation between Genetec Technology and OSK Holdings
Assuming the 90 days trading horizon Genetec Technology Bhd is expected to under-perform the OSK Holdings. In addition to that, Genetec Technology is 2.93 times more volatile than OSK Holdings Bhd. It trades about -0.04 of its total potential returns per unit of risk. OSK Holdings Bhd is currently generating about 0.1 per unit of volatility. If you would invest 118.00 in OSK Holdings Bhd on September 14, 2024 and sell it today you would earn a total of 52.00 from holding OSK Holdings Bhd or generate 44.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Genetec Technology Bhd vs. OSK Holdings Bhd
Performance |
| Timeline |
| Genetec Technology Bhd |
| OSK Holdings Bhd |
Genetec Technology and OSK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetec Technology and OSK Holdings
The main advantage of trading using opposite Genetec Technology and OSK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetec Technology position performs unexpectedly, OSK Holdings 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 OSK Holdings will offset losses from the drop in OSK Holdings' long position.| Genetec Technology vs. PIE Industrial Bhd | Genetec Technology vs. Kobay Tech Bhd | Genetec Technology vs. JF Technology BHD | Genetec Technology vs. CB Industrial Product |
| OSK Holdings vs. Asian Pac Holdings | OSK Holdings vs. Genetec Technology Bhd | OSK Holdings vs. Digistar Bhd | OSK Holdings vs. AirAsia X Bhd |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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