Correlation Between CG Hi and Genic
Can any of the company-specific risk be diversified away by investing in both CG Hi 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 CG Hi and Genic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CG Hi Tech and Genic Co, you can compare the effects of market volatilities on CG Hi 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 CG Hi with a short position of Genic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CG Hi and Genic.
Diversification Opportunities for CG Hi and Genic
Average diversification
The 3 months correlation between 264660 and Genic is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding CG Hi Tech and Genic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genic and CG Hi 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 CG Hi Tech 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 CG Hi i.e., CG Hi and Genic go up and down completely randomly.
Pair Corralation between CG Hi and Genic
Assuming the 90 days trading horizon CG Hi Tech is expected to under-perform the Genic. But the stock apears to be less risky and, when comparing its historical volatility, CG Hi Tech is 1.94 times less risky than Genic. The stock trades about 0.0 of its potential returns per unit of risk. The Genic Co is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,953,000 in Genic Co on October 16, 2024 and sell it today you would earn a total of 647,000 from holding Genic Co or generate 33.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CG Hi Tech vs. Genic Co
Performance |
| Timeline |
| CG Hi Tech |
| Genic |
CG Hi and Genic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CG Hi and Genic
The main advantage of trading using opposite CG Hi and Genic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CG Hi 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.| CG Hi vs. Alton Sports CoLtd | CG Hi vs. Hwasung Industrial Co | CG Hi vs. Drb Industrial | CG Hi vs. Cheryong Industrial CoLtd |
| Genic vs. Aprogen Healthcare Games | Genic vs. Seoul Food Industrial | Genic vs. Kakao Games Corp | Genic vs. Alton Sports CoLtd |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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