Correlation Between Genetec Technology and Eco World
Can any of the company-specific risk be diversified away by investing in both Genetec Technology and Eco World 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 Eco World 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 Eco World Develop, you can compare the effects of market volatilities on Genetec Technology and Eco World 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 Eco World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetec Technology and Eco World.
Diversification Opportunities for Genetec Technology and Eco World
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genetec and Eco is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Genetec Technology Bhd and Eco World Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eco World Develop 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 Eco World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eco World Develop has no effect on the direction of Genetec Technology i.e., Genetec Technology and Eco World go up and down completely randomly.
Pair Corralation between Genetec Technology and Eco World
Assuming the 90 days trading horizon Genetec Technology Bhd is expected to under-perform the Eco World. In addition to that, Genetec Technology is 2.47 times more volatile than Eco World Develop. It trades about -0.01 of its total potential returns per unit of risk. Eco World Develop is currently generating about 0.19 per unit of volatility. If you would invest 143.00 in Eco World Develop on August 28, 2024 and sell it today you would earn a total of 47.00 from holding Eco World Develop or generate 32.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genetec Technology Bhd vs. Eco World Develop
Performance |
| Timeline |
| Genetec Technology Bhd |
| Eco World Develop |
Genetec Technology and Eco World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetec Technology and Eco World
The main advantage of trading using opposite Genetec Technology and Eco World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetec Technology position performs unexpectedly, Eco World 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 Eco World will offset losses from the drop in Eco World's long position.| Genetec Technology vs. K One Technology Bhd | Genetec Technology vs. Kawan Food Bhd | Genetec Technology vs. Apollo Food Holdings | Genetec Technology vs. Shangri La Hotels |
| Eco World vs. Sports Toto Berhad | Eco World vs. Choo Bee Metal | Eco World vs. TAS Offshore Bhd | Eco World vs. British American Tobacco |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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