Correlation Between Genius Electronic and Altek Corp
Can any of the company-specific risk be diversified away by investing in both Genius Electronic and Altek Corp 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 Altek Corp 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 Altek Corp, you can compare the effects of market volatilities on Genius Electronic and Altek Corp 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 Altek Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Electronic and Altek Corp.
Diversification Opportunities for Genius Electronic and Altek Corp
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Genius and Altek is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Genius Electronic Optical and Altek Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altek Corp 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 Altek Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altek Corp has no effect on the direction of Genius Electronic i.e., Genius Electronic and Altek Corp go up and down completely randomly.
Pair Corralation between Genius Electronic and Altek Corp
Assuming the 90 days trading horizon Genius Electronic Optical is expected to generate 1.06 times more return on investment than Altek Corp. However, Genius Electronic is 1.06 times more volatile than Altek Corp. It trades about 0.03 of its potential returns per unit of risk. Altek Corp is currently generating about 0.0 per unit of risk. If you would invest 36,264 in Genius Electronic Optical on September 2, 2024 and sell it today you would earn a total of 8,286 from holding Genius Electronic Optical or generate 22.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Genius Electronic Optical vs. Altek Corp
Performance |
| Timeline |
| Genius Electronic Optical |
| Altek Corp |
Genius Electronic and Altek Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genius Electronic and Altek Corp
The main advantage of trading using opposite Genius Electronic and Altek Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Electronic position performs unexpectedly, Altek Corp 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 Altek Corp will offset losses from the drop in Altek Corp'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 |
| Altek Corp vs. Chaintech Technology Corp | Altek Corp vs. Avision | Altek Corp vs. Clevo Co | Altek Corp vs. Elitegroup Computer Systems |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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