Correlation Between GenoFocus and Ecopro Co
Can any of the company-specific risk be diversified away by investing in both GenoFocus and Ecopro Co 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 Ecopro Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GenoFocus and Ecopro Co, you can compare the effects of market volatilities on GenoFocus and Ecopro Co 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 Ecopro Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of GenoFocus and Ecopro Co.
Diversification Opportunities for GenoFocus and Ecopro Co
Very good diversification
The 3 months correlation between GenoFocus and Ecopro is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding GenoFocus and Ecopro Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecopro Co 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 Ecopro Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecopro Co has no effect on the direction of GenoFocus i.e., GenoFocus and Ecopro Co go up and down completely randomly.
Pair Corralation between GenoFocus and Ecopro Co
Assuming the 90 days trading horizon GenoFocus is expected to generate 0.88 times more return on investment than Ecopro Co. However, GenoFocus is 1.14 times less risky than Ecopro Co. It trades about 0.02 of its potential returns per unit of risk. Ecopro Co is currently generating about -0.05 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 Against |
| Strength | Very Weak |
| Accuracy | 96.48% |
| Values | Daily Returns |
GenoFocus vs. Ecopro Co
Performance |
| Timeline |
| GenoFocus |
| Ecopro Co |
GenoFocus and Ecopro Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GenoFocus and Ecopro Co
The main advantage of trading using opposite GenoFocus and Ecopro Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GenoFocus position performs unexpectedly, Ecopro Co 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 Ecopro Co will offset losses from the drop in Ecopro Co's long position.| GenoFocus vs. Netmarble Games Corp | GenoFocus vs. Koh Young Technology | GenoFocus vs. Hwangkum Steel Technology | GenoFocus vs. Daou Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges |