Correlation Between PCL Technologies and Generalplus Technology
Can any of the company-specific risk be diversified away by investing in both PCL Technologies and Generalplus Technology 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 PCL Technologies and Generalplus Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PCL Technologies and Generalplus Technology, you can compare the effects of market volatilities on PCL Technologies and Generalplus Technology 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 PCL Technologies with a short position of Generalplus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PCL Technologies and Generalplus Technology.
Diversification Opportunities for PCL Technologies and Generalplus Technology
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between PCL and Generalplus is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding PCL Technologies and Generalplus Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generalplus Technology and PCL Technologies 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 PCL Technologies are associated (or correlated) with Generalplus Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generalplus Technology has no effect on the direction of PCL Technologies i.e., PCL Technologies and Generalplus Technology go up and down completely randomly.
Pair Corralation between PCL Technologies and Generalplus Technology
Assuming the 90 days trading horizon PCL Technologies is expected to generate 1.44 times more return on investment than Generalplus Technology. However, PCL Technologies is 1.44 times more volatile than Generalplus Technology. It trades about 0.12 of its potential returns per unit of risk. Generalplus Technology is currently generating about -0.07 per unit of risk. If you would invest 7,330 in PCL Technologies on September 3, 2024 and sell it today you would earn a total of 4,470 from holding PCL Technologies or generate 60.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PCL Technologies vs. Generalplus Technology
Performance |
| Timeline |
| PCL Technologies |
| Generalplus Technology |
PCL Technologies and Generalplus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PCL Technologies and Generalplus Technology
The main advantage of trading using opposite PCL Technologies and Generalplus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PCL Technologies position performs unexpectedly, Generalplus Technology 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 Generalplus Technology will offset losses from the drop in Generalplus Technology's long position.| PCL Technologies vs. Phison Electronics | PCL Technologies vs. Transcend Information | PCL Technologies vs. Infortrend Technology | PCL Technologies vs. Ate Energy International |
| Generalplus Technology vs. Holtek Semiconductor | Generalplus Technology vs. Nuvoton Technology Corp | Generalplus Technology vs. Sonix Technology Co | Generalplus Technology vs. Global Unichip 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |