Correlation Between GenoFocus and SeAH Bestee
Can any of the company-specific risk be diversified away by investing in both GenoFocus and SeAH Bestee 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 GenoFocus and SeAH Bestee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GenoFocus and SeAH Bestee, you can compare the effects of market volatilities on GenoFocus and SeAH Bestee 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 GenoFocus with a short position of SeAH Bestee. Check out your portfolio center. Please also check ongoing floating volatility patterns of GenoFocus and SeAH Bestee.
Diversification Opportunities for GenoFocus and SeAH Bestee
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GenoFocus and SeAH is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding GenoFocus and SeAH Bestee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Bestee and GenoFocus 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 GenoFocus are associated (or correlated) with SeAH Bestee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeAH Bestee has no effect on the direction of GenoFocus i.e., GenoFocus and SeAH Bestee go up and down completely randomly.
Pair Corralation between GenoFocus and SeAH Bestee
Assuming the 90 days trading horizon GenoFocus is expected to generate 1.37 times more return on investment than SeAH Bestee. However, GenoFocus is 1.37 times more volatile than SeAH Bestee. It trades about 0.02 of its potential returns per unit of risk. SeAH Bestee is currently generating about -0.02 per unit of risk. If you would invest 400,000 in GenoFocus on September 12, 2024 and sell it today you would earn a total of 13,000 from holding GenoFocus or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.71% |
| Values | Daily Returns |
GenoFocus vs. SeAH Bestee
Performance |
| Timeline |
| GenoFocus |
| SeAH Bestee |
GenoFocus and SeAH Bestee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GenoFocus and SeAH Bestee
The main advantage of trading using opposite GenoFocus and SeAH Bestee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GenoFocus position performs unexpectedly, SeAH Bestee 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 SeAH Bestee will offset losses from the drop in SeAH Bestee's long position.| GenoFocus vs. Netmarble Games Corp | GenoFocus vs. Koh Young Technology | GenoFocus vs. Hwangkum Steel Technology | GenoFocus vs. Daou Technology |
| SeAH Bestee vs. LG Chemicals | SeAH Bestee vs. POSCO Holdings | SeAH Bestee vs. Hanwha Solutions | SeAH Bestee vs. Lotte Chemical Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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