Correlation Between Genertec Universal and Indutrade
Can any of the company-specific risk be diversified away by investing in both Genertec Universal and Indutrade 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 Genertec Universal and Indutrade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genertec Universal Medical and Indutrade AB, you can compare the effects of market volatilities on Genertec Universal and Indutrade 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 Genertec Universal with a short position of Indutrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genertec Universal and Indutrade.
Diversification Opportunities for Genertec Universal and Indutrade
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genertec and Indutrade is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Genertec Universal Medical and Indutrade AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indutrade AB and Genertec Universal 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 Genertec Universal Medical are associated (or correlated) with Indutrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indutrade AB has no effect on the direction of Genertec Universal i.e., Genertec Universal and Indutrade go up and down completely randomly.
Pair Corralation between Genertec Universal and Indutrade
Assuming the 90 days horizon Genertec Universal is expected to generate 6.86 times less return on investment than Indutrade. In addition to that, Genertec Universal is 2.2 times more volatile than Indutrade AB. It trades about 0.02 of its total potential returns per unit of risk. Indutrade AB is currently generating about 0.25 per unit of volatility. If you would invest 2,386 in Indutrade AB on October 20, 2024 and sell it today you would earn a total of 180.00 from holding Indutrade AB or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genertec Universal Medical vs. Indutrade AB
Performance |
| Timeline |
| Genertec Universal |
| Indutrade AB |
Genertec Universal and Indutrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genertec Universal and Indutrade
The main advantage of trading using opposite Genertec Universal and Indutrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genertec Universal position performs unexpectedly, Indutrade 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 Indutrade will offset losses from the drop in Indutrade's long position.| Genertec Universal vs. CARSALESCOM | Genertec Universal vs. ANTA SPORTS PRODUCT | Genertec Universal vs. CNVISION MEDIA | Genertec Universal vs. PACIFIC ONLINE |
| Indutrade vs. X FAB Silicon Foundries | Indutrade vs. Kingdee International Software | Indutrade vs. Vishay Intertechnology | Indutrade vs. Air Lease |
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.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |