Correlation Between IQuest Co and Genic
Can any of the company-specific risk be diversified away by investing in both IQuest Co and Genic 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 IQuest Co and Genic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IQuest Co and Genic Co, you can compare the effects of market volatilities on IQuest Co and Genic 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 IQuest Co with a short position of Genic. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQuest Co and Genic.
Diversification Opportunities for IQuest Co and Genic
Very good diversification
The 3 months correlation between IQuest and Genic is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding IQuest Co and Genic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genic and IQuest Co 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 IQuest Co are associated (or correlated) with Genic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genic has no effect on the direction of IQuest Co i.e., IQuest Co and Genic go up and down completely randomly.
Pair Corralation between IQuest Co and Genic
Assuming the 90 days trading horizon IQuest Co is expected to under-perform the Genic. But the stock apears to be less risky and, when comparing its historical volatility, IQuest Co is 1.66 times less risky than Genic. The stock trades about -0.02 of its potential returns per unit of risk. The Genic Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 495,000 in Genic Co on September 25, 2024 and sell it today you would earn a total of 1,805,000 from holding Genic Co or generate 364.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
IQuest Co vs. Genic Co
Performance |
| Timeline |
| IQuest Co |
| Genic |
IQuest Co and Genic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IQuest Co and Genic
The main advantage of trading using opposite IQuest Co and Genic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQuest Co position performs unexpectedly, Genic 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 Genic will offset losses from the drop in Genic's long position.| IQuest Co vs. Polaris Office Corp | IQuest Co vs. Coloray International Investment | IQuest Co vs. Korea Investment Holdings | IQuest Co vs. Seoul Food Industrial |
| Genic vs. FoodNamoo | Genic vs. Polaris Office Corp | Genic vs. Korea Electronic Certification | Genic vs. Wave Electronics 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |