Correlation Between PH Tech and Genie Music
Can any of the company-specific risk be diversified away by investing in both PH Tech 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 PH Tech and Genie Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PH Tech Co and Genie Music, you can compare the effects of market volatilities on PH Tech 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 PH Tech with a short position of Genie Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and Genie Music.
Diversification Opportunities for PH Tech and Genie Music
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 239890 and Genie is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and Genie Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genie Music and PH Tech 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 PH Tech Co 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 PH Tech i.e., PH Tech and Genie Music go up and down completely randomly.
Pair Corralation between PH Tech and Genie Music
Assuming the 90 days trading horizon PH Tech Co is expected to under-perform the Genie Music. In addition to that, PH Tech is 1.06 times more volatile than Genie Music. It trades about -0.13 of its total potential returns per unit of risk. Genie Music is currently generating about -0.03 per unit of volatility. If you would invest 277,500 in Genie Music on September 21, 2024 and sell it today you would lose (56,000) from holding Genie Music or give up 20.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. Genie Music
Performance |
| Timeline |
| PH Tech |
| Genie Music |
PH Tech and Genie Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and Genie Music
The main advantage of trading using opposite PH Tech and Genie Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech 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.The idea behind PH Tech Co and Genie Music 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.| Genie Music vs. LG Household Healthcare | Genie Music vs. Daishin Information Communications | Genie Music vs. CG Hi Tech | Genie Music vs. BIT Computer 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |