Correlation Between Al Aqar and Genetec Technology
Can any of the company-specific risk be diversified away by investing in both Al Aqar and Genetec 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 Al Aqar and Genetec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Al Aqar Healthcare and Genetec Technology Bhd, you can compare the effects of market volatilities on Al Aqar and Genetec 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 Al Aqar with a short position of Genetec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Al Aqar and Genetec Technology.
Diversification Opportunities for Al Aqar and Genetec Technology
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 5116 and Genetec is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Al Aqar Healthcare and Genetec Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genetec Technology Bhd and Al Aqar 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 Al Aqar Healthcare are associated (or correlated) with Genetec Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genetec Technology Bhd has no effect on the direction of Al Aqar i.e., Al Aqar and Genetec Technology go up and down completely randomly.
Pair Corralation between Al Aqar and Genetec Technology
Assuming the 90 days trading horizon Al Aqar is expected to generate 105.52 times less return on investment than Genetec Technology. But when comparing it to its historical volatility, Al Aqar Healthcare is 6.54 times less risky than Genetec Technology. It trades about 0.0 of its potential returns per unit of risk. Genetec Technology Bhd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 101.00 in Genetec Technology Bhd on November 2, 2024 and sell it today you would earn a total of 38.00 from holding Genetec Technology Bhd or generate 37.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Al Aqar Healthcare vs. Genetec Technology Bhd
Performance |
| Timeline |
| Al Aqar Healthcare |
| Genetec Technology Bhd |
Al Aqar and Genetec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Al Aqar and Genetec Technology
The main advantage of trading using opposite Al Aqar and Genetec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Al Aqar position performs unexpectedly, Genetec 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 Genetec Technology will offset losses from the drop in Genetec Technology's long position.| Al Aqar vs. Awanbiru Technology Bhd | Al Aqar vs. Public Bank Bhd | Al Aqar vs. Malayan Banking Bhd | Al Aqar vs. Bank Islam Malaysia |
| Genetec Technology vs. Supercomnet Technologies Bhd | Genetec Technology vs. Homeritz Bhd | Genetec Technology vs. Petronas Chemicals Group | Genetec Technology vs. Magni Tech Industries |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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