Correlation Between EA Technique and Genetec Technology
Can any of the company-specific risk be diversified away by investing in both EA Technique 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 EA Technique and Genetec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Technique M and Genetec Technology Bhd, you can compare the effects of market volatilities on EA Technique 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 EA Technique with a short position of Genetec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Technique and Genetec Technology.
Diversification Opportunities for EA Technique and Genetec Technology
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between 5259 and Genetec is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding EA Technique M 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 EA Technique 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 EA Technique M 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 EA Technique i.e., EA Technique and Genetec Technology go up and down completely randomly.
Pair Corralation between EA Technique and Genetec Technology
Assuming the 90 days trading horizon EA Technique M is expected to generate 1.86 times more return on investment than Genetec Technology. However, EA Technique is 1.86 times more volatile than Genetec Technology Bhd. It trades about 0.05 of its potential returns per unit of risk. Genetec Technology Bhd is currently generating about -0.03 per unit of risk. If you would invest 14.00 in EA Technique M on September 12, 2024 and sell it today you would earn a total of 16.00 from holding EA Technique M or generate 114.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Technique M vs. Genetec Technology Bhd
Performance |
| Timeline |
| EA Technique M |
| Genetec Technology Bhd |
EA Technique and Genetec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Technique and Genetec Technology
The main advantage of trading using opposite EA Technique and Genetec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Technique 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.| EA Technique vs. CPE Technology Berhad | EA Technique vs. Hong Leong Bank | EA Technique vs. JF Technology BHD | EA Technique vs. Alliance Financial Group |
| Genetec Technology vs. PIE Industrial Bhd | Genetec Technology vs. Kobay Tech Bhd | Genetec Technology vs. JF Technology BHD | Genetec Technology vs. CB Industrial Product |
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.
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