Correlation Between Macroblock and Genesyslogic
Can any of the company-specific risk be diversified away by investing in both Macroblock and Genesyslogic 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 Macroblock and Genesyslogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macroblock and Genesyslogic, you can compare the effects of market volatilities on Macroblock and Genesyslogic 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 Macroblock with a short position of Genesyslogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macroblock and Genesyslogic.
Diversification Opportunities for Macroblock and Genesyslogic
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Macroblock and Genesyslogic is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Macroblock and Genesyslogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesyslogic and Macroblock 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 Macroblock are associated (or correlated) with Genesyslogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesyslogic has no effect on the direction of Macroblock i.e., Macroblock and Genesyslogic go up and down completely randomly.
Pair Corralation between Macroblock and Genesyslogic
Assuming the 90 days trading horizon Macroblock is expected to under-perform the Genesyslogic. But the stock apears to be less risky and, when comparing its historical volatility, Macroblock is 1.84 times less risky than Genesyslogic. The stock trades about -0.11 of its potential returns per unit of risk. The Genesyslogic is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 12,750 in Genesyslogic on September 4, 2024 and sell it today you would earn a total of 2,050 from holding Genesyslogic or generate 16.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macroblock vs. Genesyslogic
Performance |
| Timeline |
| Macroblock |
| Genesyslogic |
Macroblock and Genesyslogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macroblock and Genesyslogic
The main advantage of trading using opposite Macroblock and Genesyslogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macroblock position performs unexpectedly, Genesyslogic 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 Genesyslogic will offset losses from the drop in Genesyslogic's long position.| Macroblock vs. Newretail Co | Macroblock vs. Chunghwa Telecom Co | Macroblock vs. Tait Marketing Distribution | Macroblock vs. Tai Tung Communication |
| Genesyslogic vs. Sitronix Technology Corp | Genesyslogic vs. Kinsus Interconnect Technology | Genesyslogic vs. WiseChip Semiconductor | Genesyslogic vs. Novatek Microelectronics 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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