Correlation Between Walsin Technology and Genius Electronic
Can any of the company-specific risk be diversified away by investing in both Walsin Technology and Genius Electronic 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 Walsin Technology and Genius Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walsin Technology Corp and Genius Electronic Optical, you can compare the effects of market volatilities on Walsin Technology and Genius Electronic 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 Walsin Technology with a short position of Genius Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walsin Technology and Genius Electronic.
Diversification Opportunities for Walsin Technology and Genius Electronic
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walsin and Genius is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Walsin Technology Corp and Genius Electronic Optical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Electronic Optical and Walsin Technology 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 Walsin Technology Corp are associated (or correlated) with Genius Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genius Electronic Optical has no effect on the direction of Walsin Technology i.e., Walsin Technology and Genius Electronic go up and down completely randomly.
Pair Corralation between Walsin Technology and Genius Electronic
Assuming the 90 days trading horizon Walsin Technology is expected to generate 2.57 times less return on investment than Genius Electronic. In addition to that, Walsin Technology is 1.01 times more volatile than Genius Electronic Optical. It trades about 0.01 of its total potential returns per unit of risk. Genius Electronic Optical is currently generating about 0.03 per unit of volatility. If you would invest 38,833 in Genius Electronic Optical on November 28, 2024 and sell it today you would earn a total of 8,767 from holding Genius Electronic Optical or generate 22.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walsin Technology Corp vs. Genius Electronic Optical
Performance |
| Timeline |
| Walsin Technology Corp |
| Genius Electronic Optical |
Walsin Technology and Genius Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walsin Technology and Genius Electronic
The main advantage of trading using opposite Walsin Technology and Genius Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walsin Technology position performs unexpectedly, Genius Electronic 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 Genius Electronic will offset losses from the drop in Genius Electronic's long position.| Walsin Technology vs. Yageo Corp | Walsin Technology vs. Nanya Technology Corp | Walsin Technology vs. Holy Stone Enterprise | Walsin Technology vs. Novatek Microelectronics Corp |
| Genius Electronic vs. LARGAN Precision Co | Genius Electronic vs. Catcher Technology Co | Genius Electronic vs. Unimicron Technology Corp | Genius Electronic vs. WIN Semiconductors |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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