Correlation Between Genetec Technology and Uwc Bhd
Can any of the company-specific risk be diversified away by investing in both Genetec Technology and Uwc Bhd 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 Uwc Bhd 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 Uwc Bhd, you can compare the effects of market volatilities on Genetec Technology and Uwc Bhd 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 Uwc Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetec Technology and Uwc Bhd.
Diversification Opportunities for Genetec Technology and Uwc Bhd
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Genetec and Uwc is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Genetec Technology Bhd and Uwc Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uwc 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 Uwc Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uwc Bhd has no effect on the direction of Genetec Technology i.e., Genetec Technology and Uwc Bhd go up and down completely randomly.
Pair Corralation between Genetec Technology and Uwc Bhd
Assuming the 90 days trading horizon Genetec Technology Bhd is expected to generate 1.27 times more return on investment than Uwc Bhd. However, Genetec Technology is 1.27 times more volatile than Uwc Bhd. It trades about 0.0 of its potential returns per unit of risk. Uwc Bhd is currently generating about -0.18 per unit of risk. If you would invest 141.00 in Genetec Technology Bhd on November 2, 2024 and sell it today you would lose (2.00) from holding Genetec Technology Bhd or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genetec Technology Bhd vs. Uwc Bhd
Performance |
| Timeline |
| Genetec Technology Bhd |
| Uwc Bhd |
Genetec Technology and Uwc Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetec Technology and Uwc Bhd
The main advantage of trading using opposite Genetec Technology and Uwc Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetec Technology position performs unexpectedly, Uwc Bhd 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 Uwc Bhd will offset losses from the drop in Uwc Bhd'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 |
| Uwc Bhd vs. YX Precious Metals | Uwc Bhd vs. Lysaght Galvanized Steel | Uwc Bhd vs. Malaysia Steel Works | Uwc Bhd vs. Rubberex M |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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