Correlation Between Genetec Technology and MyTech Group
Can any of the company-specific risk be diversified away by investing in both Genetec Technology and MyTech Group 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 MyTech Group 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 MyTech Group Bhd, you can compare the effects of market volatilities on Genetec Technology and MyTech Group 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 MyTech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetec Technology and MyTech Group.
Diversification Opportunities for Genetec Technology and MyTech Group
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Genetec and MyTech is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Genetec Technology Bhd and MyTech Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyTech Group 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 MyTech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyTech Group Bhd has no effect on the direction of Genetec Technology i.e., Genetec Technology and MyTech Group go up and down completely randomly.
Pair Corralation between Genetec Technology and MyTech Group
Assuming the 90 days trading horizon Genetec Technology Bhd is expected to generate 5.02 times more return on investment than MyTech Group. However, Genetec Technology is 5.02 times more volatile than MyTech Group Bhd. It trades about 0.07 of its potential returns per unit of risk. MyTech Group Bhd is currently generating about -0.12 per unit of risk. If you would invest 77.00 in Genetec Technology Bhd on August 24, 2024 and sell it today you would earn a total of 5.00 from holding Genetec Technology Bhd or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Genetec Technology Bhd vs. MyTech Group Bhd
Performance |
| Timeline |
| Genetec Technology Bhd |
| MyTech Group Bhd |
Genetec Technology and MyTech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetec Technology and MyTech Group
The main advantage of trading using opposite Genetec Technology and MyTech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetec Technology position performs unexpectedly, MyTech Group 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 MyTech Group will offset losses from the drop in MyTech Group's long position.| Genetec Technology vs. PIE Industrial Bhd | Genetec Technology vs. Choo Bee Metal | Genetec Technology vs. Eonmetall Group Bhd | Genetec Technology vs. Melewar Industrial Group |
| MyTech Group vs. Greatech Technology Bhd | MyTech Group vs. Uwc Bhd | MyTech Group vs. Genetec Technology Bhd | MyTech Group vs. PIE Industrial 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 Stocks Directory module to find actively traded stocks across global markets.
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