Correlation Between Genting Malaysia and Uchi Technologies
Can any of the company-specific risk be diversified away by investing in both Genting Malaysia and Uchi Technologies 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 Genting Malaysia and Uchi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genting Malaysia Bhd and Uchi Technologies Bhd, you can compare the effects of market volatilities on Genting Malaysia and Uchi Technologies 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 Genting Malaysia with a short position of Uchi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genting Malaysia and Uchi Technologies.
Diversification Opportunities for Genting Malaysia and Uchi Technologies
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genting and Uchi is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Genting Malaysia Bhd and Uchi Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uchi Technologies Bhd and Genting Malaysia 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 Genting Malaysia Bhd are associated (or correlated) with Uchi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uchi Technologies Bhd has no effect on the direction of Genting Malaysia i.e., Genting Malaysia and Uchi Technologies go up and down completely randomly.
Pair Corralation between Genting Malaysia and Uchi Technologies
If you would invest 279.00 in Uchi Technologies Bhd on August 28, 2024 and sell it today you would earn a total of 106.00 from holding Uchi Technologies Bhd or generate 37.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.21% |
| Values | Daily Returns |
Genting Malaysia Bhd vs. Uchi Technologies Bhd
Performance |
| Timeline |
| Genting Malaysia Bhd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Uchi Technologies Bhd |
Genting Malaysia and Uchi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genting Malaysia and Uchi Technologies
The main advantage of trading using opposite Genting Malaysia and Uchi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genting Malaysia position performs unexpectedly, Uchi Technologies 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 Uchi Technologies will offset losses from the drop in Uchi Technologies' long position.| Genting Malaysia vs. ONETECH SOLUTIONS HOLDINGS | Genting Malaysia vs. Hong Leong Bank | Genting Malaysia vs. Cosmos Technology International | Genting Malaysia vs. KPJ Healthcare Bhd |
| Uchi Technologies vs. Digistar Bhd | Uchi Technologies vs. Minetech Resources Bhd | Uchi Technologies vs. OpenSys M Bhd | Uchi Technologies vs. Insas Bhd |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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