Correlation Between Genius Electronic and General Interface
Can any of the company-specific risk be diversified away by investing in both Genius Electronic and General Interface 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 General Interface 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 General Interface Solution, you can compare the effects of market volatilities on Genius Electronic and General Interface 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 General Interface. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Electronic and General Interface.
Diversification Opportunities for Genius Electronic and General Interface
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Genius and General is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Genius Electronic Optical and General Interface Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Interface 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 General Interface. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Interface has no effect on the direction of Genius Electronic i.e., Genius Electronic and General Interface go up and down completely randomly.
Pair Corralation between Genius Electronic and General Interface
Assuming the 90 days trading horizon Genius Electronic Optical is expected to generate 1.15 times more return on investment than General Interface. However, Genius Electronic is 1.15 times more volatile than General Interface Solution. It trades about 0.03 of its potential returns per unit of risk. General Interface Solution is currently generating about -0.04 per unit of risk. If you would invest 38,833 in Genius Electronic Optical on November 28, 2024 and sell it today you would earn a total of 8,767 from holding Genius Electronic Optical or generate 22.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Genius Electronic Optical vs. General Interface Solution
Performance |
| Timeline |
| Genius Electronic Optical |
| General Interface |
Genius Electronic and General Interface Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genius Electronic and General Interface
The main advantage of trading using opposite Genius Electronic and General Interface positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Electronic position performs unexpectedly, General Interface 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 General Interface will offset losses from the drop in General Interface'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 |
| General Interface vs. Zhen Ding Technology | General Interface vs. TPK Holding Co | General Interface vs. Catcher Technology Co | General Interface vs. Flexium Interconnect |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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