Correlation Between Genetec Technology and MI Technovation
Can any of the company-specific risk be diversified away by investing in both Genetec Technology and MI Technovation 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 MI Technovation 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 MI Technovation Bhd, you can compare the effects of market volatilities on Genetec Technology and MI Technovation 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 MI Technovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetec Technology and MI Technovation.
Diversification Opportunities for Genetec Technology and MI Technovation
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genetec and 5286 is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Genetec Technology Bhd and MI Technovation Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MI Technovation 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 MI Technovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MI Technovation Bhd has no effect on the direction of Genetec Technology i.e., Genetec Technology and MI Technovation go up and down completely randomly.
Pair Corralation between Genetec Technology and MI Technovation
Assuming the 90 days trading horizon Genetec Technology Bhd is expected to under-perform the MI Technovation. In addition to that, Genetec Technology is 1.68 times more volatile than MI Technovation Bhd. It trades about -0.03 of its total potential returns per unit of risk. MI Technovation Bhd is currently generating about 0.03 per unit of volatility. If you would invest 174.00 in MI Technovation Bhd on November 28, 2024 and sell it today you would earn a total of 19.00 from holding MI Technovation Bhd or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genetec Technology Bhd vs. MI Technovation Bhd
Performance |
| Timeline |
| Genetec Technology Bhd |
| MI Technovation Bhd |
Genetec Technology and MI Technovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetec Technology and MI Technovation
The main advantage of trading using opposite Genetec Technology and MI Technovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetec Technology position performs unexpectedly, MI Technovation 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 MI Technovation will offset losses from the drop in MI Technovation's long position.| Genetec Technology vs. Privasia Technology Bhd | Genetec Technology vs. K One Technology Bhd | Genetec Technology vs. CPE Technology Berhad | Genetec Technology vs. Apollo Food Holdings |
| MI Technovation vs. Press Metal Bhd | MI Technovation vs. Choo Bee Metal | MI Technovation vs. Datasonic Group Bhd | MI Technovation vs. Leader Steel 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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