Correlation Between Genetec Technology and Berjaya Food
Can any of the company-specific risk be diversified away by investing in both Genetec Technology and Berjaya Food 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 Berjaya Food 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 Berjaya Food Bhd, you can compare the effects of market volatilities on Genetec Technology and Berjaya Food 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 Berjaya Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetec Technology and Berjaya Food.
Diversification Opportunities for Genetec Technology and Berjaya Food
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genetec and Berjaya is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Genetec Technology Bhd and Berjaya Food Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berjaya Food 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 Berjaya Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berjaya Food Bhd has no effect on the direction of Genetec Technology i.e., Genetec Technology and Berjaya Food go up and down completely randomly.
Pair Corralation between Genetec Technology and Berjaya Food
Assuming the 90 days trading horizon Genetec Technology Bhd is expected to under-perform the Berjaya Food. But the stock apears to be less risky and, when comparing its historical volatility, Genetec Technology Bhd is 1.29 times less risky than Berjaya Food. The stock trades about 0.0 of its potential returns per unit of risk. The Berjaya Food Bhd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Berjaya Food Bhd on November 2, 2024 and sell it today you would earn a total of 2.00 from holding Berjaya Food Bhd or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genetec Technology Bhd vs. Berjaya Food Bhd
Performance |
| Timeline |
| Genetec Technology Bhd |
| Berjaya Food Bhd |
Genetec Technology and Berjaya Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetec Technology and Berjaya Food
The main advantage of trading using opposite Genetec Technology and Berjaya Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetec Technology position performs unexpectedly, Berjaya Food 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 Berjaya Food will offset losses from the drop in Berjaya Food's long position.| Genetec Technology vs. Supercomnet Technologies Bhd | Genetec Technology vs. Homeritz Bhd | Genetec Technology vs. Petronas Chemicals Group | Genetec Technology vs. Magni Tech Industries |
| Berjaya Food vs. ONETECH SOLUTIONS HOLDINGS | Berjaya Food vs. Awanbiru Technology Bhd | Berjaya Food vs. Rubberex M | Berjaya Food vs. Apollo Food Holdings |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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