Correlation Between Genetec Technology and PIE Industrial
Can any of the company-specific risk be diversified away by investing in both Genetec Technology and PIE Industrial 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 PIE Industrial 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 PIE Industrial Bhd, you can compare the effects of market volatilities on Genetec Technology and PIE Industrial 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 PIE Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetec Technology and PIE Industrial.
Diversification Opportunities for Genetec Technology and PIE Industrial
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Genetec and PIE is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Genetec Technology Bhd and PIE Industrial Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIE Industrial 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 PIE Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIE Industrial Bhd has no effect on the direction of Genetec Technology i.e., Genetec Technology and PIE Industrial go up and down completely randomly.
Pair Corralation between Genetec Technology and PIE Industrial
Assuming the 90 days trading horizon Genetec Technology Bhd is expected to generate 1.53 times more return on investment than PIE Industrial. However, Genetec Technology is 1.53 times more volatile than PIE Industrial Bhd. It trades about 0.09 of its potential returns per unit of risk. PIE Industrial Bhd is currently generating about -0.49 per unit of risk. If you would invest 141.00 in Genetec Technology Bhd on November 3, 2024 and sell it today you would earn a total of 8.00 from holding Genetec Technology Bhd or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genetec Technology Bhd vs. PIE Industrial Bhd
Performance |
| Timeline |
| Genetec Technology Bhd |
| PIE Industrial Bhd |
Genetec Technology and PIE Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetec Technology and PIE Industrial
The main advantage of trading using opposite Genetec Technology and PIE Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetec Technology position performs unexpectedly, PIE Industrial 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 PIE Industrial will offset losses from the drop in PIE Industrial's long position.| Genetec Technology vs. YX Precious Metals | Genetec Technology vs. Kluang Rubber | Genetec Technology vs. Supercomnet Technologies Bhd | Genetec Technology vs. Binasat Communications Bhd |
| PIE Industrial vs. Greatech Technology Bhd | PIE Industrial vs. Uwc Bhd | PIE Industrial vs. Genetec Technology Bhd | PIE Industrial vs. Dufu Tech Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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