Correlation Between Genetec Technology and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both Genetec Technology and IHH Healthcare 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 IHH Healthcare 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 IHH Healthcare Bhd, you can compare the effects of market volatilities on Genetec Technology and IHH Healthcare 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 IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetec Technology and IHH Healthcare.
Diversification Opportunities for Genetec Technology and IHH Healthcare
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genetec and IHH is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Genetec Technology Bhd and IHH Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHH Healthcare 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 IHH Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHH Healthcare Bhd has no effect on the direction of Genetec Technology i.e., Genetec Technology and IHH Healthcare go up and down completely randomly.
Pair Corralation between Genetec Technology and IHH Healthcare
Assuming the 90 days trading horizon Genetec Technology Bhd is expected to generate 11.01 times more return on investment than IHH Healthcare. However, Genetec Technology is 11.01 times more volatile than IHH Healthcare Bhd. It trades about 0.29 of its potential returns per unit of risk. IHH Healthcare Bhd is currently generating about -0.06 per unit of risk. If you would invest 69.00 in Genetec Technology Bhd on September 5, 2024 and sell it today you would earn a total of 56.00 from holding Genetec Technology Bhd or generate 81.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genetec Technology Bhd vs. IHH Healthcare Bhd
Performance |
| Timeline |
| Genetec Technology Bhd |
| IHH Healthcare Bhd |
Genetec Technology and IHH Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetec Technology and IHH Healthcare
The main advantage of trading using opposite Genetec Technology and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetec Technology position performs unexpectedly, IHH Healthcare 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 IHH Healthcare will offset losses from the drop in IHH Healthcare's long position.| Genetec Technology vs. DC HEALTHCARE HOLDINGS | Genetec Technology vs. Press Metal Bhd | Genetec Technology vs. Mycron Steel Bhd | Genetec Technology vs. Southern Steel 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |