Correlation Between Genius Electronic and HannsTouch Solution
Can any of the company-specific risk be diversified away by investing in both Genius Electronic and HannsTouch Solution 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 Genius Electronic and HannsTouch Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genius Electronic Optical and HannsTouch Solution, you can compare the effects of market volatilities on Genius Electronic and HannsTouch Solution 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 Genius Electronic with a short position of HannsTouch Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Electronic and HannsTouch Solution.
Diversification Opportunities for Genius Electronic and HannsTouch Solution
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genius and HannsTouch is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Genius Electronic Optical and HannsTouch Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HannsTouch Solution and Genius Electronic 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 Genius Electronic Optical are associated (or correlated) with HannsTouch Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HannsTouch Solution has no effect on the direction of Genius Electronic i.e., Genius Electronic and HannsTouch Solution go up and down completely randomly.
Pair Corralation between Genius Electronic and HannsTouch Solution
Assuming the 90 days trading horizon Genius Electronic is expected to generate 1.58 times less return on investment than HannsTouch Solution. But when comparing it to its historical volatility, Genius Electronic Optical is 1.2 times less risky than HannsTouch Solution. It trades about 0.31 of its potential returns per unit of risk. HannsTouch Solution is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 823.00 in HannsTouch Solution on November 28, 2024 and sell it today you would earn a total of 79.00 from holding HannsTouch Solution or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Genius Electronic Optical vs. HannsTouch Solution
Performance |
| Timeline |
| Genius Electronic Optical |
| HannsTouch Solution |
Genius Electronic and HannsTouch Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genius Electronic and HannsTouch Solution
The main advantage of trading using opposite Genius Electronic and HannsTouch Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Electronic position performs unexpectedly, HannsTouch Solution 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 HannsTouch Solution will offset losses from the drop in HannsTouch Solution's long position.| Genius Electronic vs. LARGAN Precision Co | Genius Electronic vs. Catcher Technology Co | Genius Electronic vs. Unimicron Technology Corp | Genius Electronic vs. WIN Semiconductors |
| HannsTouch Solution vs. Hannstar Display Corp | HannsTouch Solution vs. Amtran Technology Co | HannsTouch Solution vs. AU Optronics | HannsTouch Solution vs. Optimax Technology Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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