Correlation Between Dimerco Data and Genesis Technology
Can any of the company-specific risk be diversified away by investing in both Dimerco Data and Genesis 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 Dimerco Data and Genesis Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimerco Data System and Genesis Technology, you can compare the effects of market volatilities on Dimerco Data and Genesis 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 Dimerco Data with a short position of Genesis Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimerco Data and Genesis Technology.
Diversification Opportunities for Dimerco Data and Genesis Technology
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dimerco and Genesis is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dimerco Data System and Genesis Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Technology and Dimerco Data 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 Dimerco Data System are associated (or correlated) with Genesis Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Technology has no effect on the direction of Dimerco Data i.e., Dimerco Data and Genesis Technology go up and down completely randomly.
Pair Corralation between Dimerco Data and Genesis Technology
Assuming the 90 days trading horizon Dimerco Data System is expected to generate 0.83 times more return on investment than Genesis Technology. However, Dimerco Data System is 1.21 times less risky than Genesis Technology. It trades about 0.05 of its potential returns per unit of risk. Genesis Technology is currently generating about 0.02 per unit of risk. If you would invest 8,183 in Dimerco Data System on August 24, 2024 and sell it today you would earn a total of 2,567 from holding Dimerco Data System or generate 31.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimerco Data System vs. Genesis Technology
Performance |
| Timeline |
| Dimerco Data System |
| Genesis Technology |
Dimerco Data and Genesis Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimerco Data and Genesis Technology
The main advantage of trading using opposite Dimerco Data and Genesis Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimerco Data position performs unexpectedly, Genesis 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 Genesis Technology will offset losses from the drop in Genesis Technology's long position.| Dimerco Data vs. YuantaP shares Taiwan Electronics | Dimerco Data vs. YuantaP shares Taiwan Top | Dimerco Data vs. YuantaP shares Taiwan Mid Cap | Dimerco Data vs. Fubon MSCI Taiwan |
| Genesis Technology vs. Simple Mart Retail | Genesis Technology vs. Trade Van Information Services | Genesis Technology vs. Chien Kuo Construction | Genesis Technology vs. Dimerco Data System |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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