Correlation Between Oriental Precision and Genie Music
Can any of the company-specific risk be diversified away by investing in both Oriental Precision and Genie Music 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 Oriental Precision and Genie Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Precision Engineering and Genie Music, you can compare the effects of market volatilities on Oriental Precision and Genie Music 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 Oriental Precision with a short position of Genie Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Precision and Genie Music.
Diversification Opportunities for Oriental Precision and Genie Music
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oriental and Genie is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Precision Engineering and Genie Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genie Music and Oriental Precision 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 Oriental Precision Engineering are associated (or correlated) with Genie Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genie Music has no effect on the direction of Oriental Precision i.e., Oriental Precision and Genie Music go up and down completely randomly.
Pair Corralation between Oriental Precision and Genie Music
Assuming the 90 days trading horizon Oriental Precision Engineering is expected to generate 1.01 times more return on investment than Genie Music. However, Oriental Precision is 1.01 times more volatile than Genie Music. It trades about 0.07 of its potential returns per unit of risk. Genie Music is currently generating about -0.03 per unit of risk. If you would invest 238,919 in Oriental Precision Engineering on October 15, 2024 and sell it today you would earn a total of 315,081 from holding Oriental Precision Engineering or generate 131.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Precision Engineering vs. Genie Music
Performance |
| Timeline |
| Oriental Precision |
| Genie Music |
Oriental Precision and Genie Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Precision and Genie Music
The main advantage of trading using opposite Oriental Precision and Genie Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Precision position performs unexpectedly, Genie Music 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 Genie Music will offset losses from the drop in Genie Music's long position.| Oriental Precision vs. Woori Financial Group | Oriental Precision vs. Jb Financial | Oriental Precision vs. Nh Investment And | Oriental Precision vs. Hyundai Heavy Industries |
| Genie Music vs. DB Financial Investment | Genie Music vs. Cloud Air CoLtd | Genie Music vs. Homecast CoLtd | Genie Music vs. Jeju Air Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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