Correlation Between Genic and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Genic and Inzi Display 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 Genic and Inzi Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genic Co and Inzi Display CoLtd, you can compare the effects of market volatilities on Genic and Inzi Display 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 Genic with a short position of Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genic and Inzi Display.
Diversification Opportunities for Genic and Inzi Display
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Genic and Inzi is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Genic Co and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd and Genic 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 Genic Co are associated (or correlated) with Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Genic i.e., Genic and Inzi Display go up and down completely randomly.
Pair Corralation between Genic and Inzi Display
Assuming the 90 days trading horizon Genic Co is expected to generate 4.21 times more return on investment than Inzi Display. However, Genic is 4.21 times more volatile than Inzi Display CoLtd. It trades about 0.27 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about 0.04 per unit of risk. If you would invest 1,734,000 in Genic Co on September 27, 2024 and sell it today you would earn a total of 666,000 from holding Genic Co or generate 38.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genic Co vs. Inzi Display CoLtd
Performance |
| Timeline |
| Genic |
| Inzi Display CoLtd |
Genic and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genic and Inzi Display
The main advantage of trading using opposite Genic and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genic position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.The idea behind Genic Co and Inzi Display CoLtd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Inzi Display vs. Dongsin Engineering Construction | Inzi Display vs. Doosan Fuel Cell | Inzi Display vs. Daishin Balance 1 | Inzi Display vs. Total Soft Bank |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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