Correlation Between Genetec Technology and Apex Healthcare
Can any of the company-specific risk be diversified away by investing in both Genetec Technology and Apex 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 Apex 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 Apex Healthcare Bhd, you can compare the effects of market volatilities on Genetec Technology and Apex 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 Apex Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetec Technology and Apex Healthcare.
Diversification Opportunities for Genetec Technology and Apex Healthcare
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genetec and Apex is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Genetec Technology Bhd and Apex Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex 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 Apex Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Healthcare Bhd has no effect on the direction of Genetec Technology i.e., Genetec Technology and Apex Healthcare go up and down completely randomly.
Pair Corralation between Genetec Technology and Apex Healthcare
Assuming the 90 days trading horizon Genetec Technology Bhd is expected to generate 3.41 times more return on investment than Apex Healthcare. However, Genetec Technology is 3.41 times more volatile than Apex Healthcare Bhd. It trades about 0.2 of its potential returns per unit of risk. Apex Healthcare Bhd is currently generating about -0.17 per unit of risk. If you would invest 123.00 in Genetec Technology Bhd on October 20, 2024 and sell it today you would earn a total of 16.00 from holding Genetec Technology Bhd or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genetec Technology Bhd vs. Apex Healthcare Bhd
Performance |
| Timeline |
| Genetec Technology Bhd |
| Apex Healthcare Bhd |
Genetec Technology and Apex Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetec Technology and Apex Healthcare
The main advantage of trading using opposite Genetec Technology and Apex Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetec Technology position performs unexpectedly, Apex 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 Apex Healthcare will offset losses from the drop in Apex Healthcare's long position.| Genetec Technology vs. BP Plastics Holding | Genetec Technology vs. Al Aqar Healthcare | Genetec Technology vs. Petronas Chemicals Group | Genetec Technology vs. RHB Bank Bhd |
| Apex Healthcare vs. Duopharma Biotech Bhd | Apex Healthcare vs. MSCM Holdings Bhd | Apex Healthcare vs. Uwc Bhd | Apex Healthcare vs. FARM FRESH BERHAD |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |