Correlation Between Genetec Technology and Resintech Bhd
Can any of the company-specific risk be diversified away by investing in both Genetec Technology and Resintech 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 Resintech 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 Resintech Bhd, you can compare the effects of market volatilities on Genetec Technology and Resintech 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 Resintech Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetec Technology and Resintech Bhd.
Diversification Opportunities for Genetec Technology and Resintech Bhd
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genetec and Resintech is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Genetec Technology Bhd and Resintech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resintech 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 Resintech Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resintech Bhd has no effect on the direction of Genetec Technology i.e., Genetec Technology and Resintech Bhd go up and down completely randomly.
Pair Corralation between Genetec Technology and Resintech Bhd
Assuming the 90 days trading horizon Genetec Technology Bhd is expected to under-perform the Resintech Bhd. In addition to that, Genetec Technology is 2.35 times more volatile than Resintech Bhd. It trades about -0.03 of its total potential returns per unit of risk. Resintech Bhd is currently generating about 0.08 per unit of volatility. If you would invest 49.00 in Resintech Bhd on September 4, 2024 and sell it today you would earn a total of 18.00 from holding Resintech Bhd or generate 36.73% 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. Resintech Bhd
Performance |
| Timeline |
| Genetec Technology Bhd |
| Resintech Bhd |
Genetec Technology and Resintech Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetec Technology and Resintech Bhd
The main advantage of trading using opposite Genetec Technology and Resintech Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetec Technology position performs unexpectedly, Resintech 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 Resintech Bhd will offset losses from the drop in Resintech Bhd's long position.| Genetec Technology vs. BP Plastics Holding | Genetec Technology vs. Minetech Resources Bhd | Genetec Technology vs. Impiana Hotels Bhd | Genetec Technology vs. SFP Tech Holdings |
| Resintech Bhd vs. Genetec Technology Bhd | Resintech Bhd vs. Carlsberg Brewery Malaysia | Resintech Bhd vs. Digistar Bhd | Resintech Bhd vs. AirAsia X 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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