Correlation Between Getac Technology and FIC Global
Can any of the company-specific risk be diversified away by investing in both Getac Technology and FIC Global 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 Getac Technology and FIC Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getac Technology Corp and FIC Global, you can compare the effects of market volatilities on Getac Technology and FIC Global 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 Getac Technology with a short position of FIC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getac Technology and FIC Global.
Diversification Opportunities for Getac Technology and FIC Global
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Getac and FIC is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Getac Technology Corp and FIC Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIC Global and Getac 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 Getac Technology Corp are associated (or correlated) with FIC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIC Global has no effect on the direction of Getac Technology i.e., Getac Technology and FIC Global go up and down completely randomly.
Pair Corralation between Getac Technology and FIC Global
Assuming the 90 days trading horizon Getac Technology Corp is expected to generate 0.96 times more return on investment than FIC Global. However, Getac Technology Corp is 1.04 times less risky than FIC Global. It trades about 0.08 of its potential returns per unit of risk. FIC Global is currently generating about 0.01 per unit of risk. If you would invest 4,230 in Getac Technology Corp on August 30, 2024 and sell it today you would earn a total of 6,170 from holding Getac Technology Corp or generate 145.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getac Technology Corp vs. FIC Global
Performance |
| Timeline |
| Getac Technology Corp |
| FIC Global |
Getac Technology and FIC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getac Technology and FIC Global
The main advantage of trading using opposite Getac Technology and FIC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getac Technology position performs unexpectedly, FIC Global 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 FIC Global will offset losses from the drop in FIC Global's long position.| Getac Technology vs. Chicony Electronics Co | Getac Technology vs. Inventec Corp | Getac Technology vs. Synnex Technology International | Getac Technology vs. Micro Star International 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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