Correlation Between Genertec Universal and RETAIL FOOD
Can any of the company-specific risk be diversified away by investing in both Genertec Universal and RETAIL FOOD 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 RETAIL FOOD 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 RETAIL FOOD GROUP, you can compare the effects of market volatilities on Genertec Universal and RETAIL FOOD 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 RETAIL FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genertec Universal and RETAIL FOOD.
Diversification Opportunities for Genertec Universal and RETAIL FOOD
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genertec and RETAIL is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Genertec Universal Medical and RETAIL FOOD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RETAIL FOOD GROUP 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 RETAIL FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RETAIL FOOD GROUP has no effect on the direction of Genertec Universal i.e., Genertec Universal and RETAIL FOOD go up and down completely randomly.
Pair Corralation between Genertec Universal and RETAIL FOOD
Assuming the 90 days horizon Genertec Universal Medical is expected to generate 0.35 times more return on investment than RETAIL FOOD. However, Genertec Universal Medical is 2.85 times less risky than RETAIL FOOD. It trades about 0.13 of its potential returns per unit of risk. RETAIL FOOD GROUP is currently generating about -0.18 per unit of risk. If you would invest 57.00 in Genertec Universal Medical on November 6, 2024 and sell it today you would earn a total of 2.00 from holding Genertec Universal Medical or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genertec Universal Medical vs. RETAIL FOOD GROUP
Performance |
| Timeline |
| Genertec Universal |
| RETAIL FOOD GROUP |
Genertec Universal and RETAIL FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genertec Universal and RETAIL FOOD
The main advantage of trading using opposite Genertec Universal and RETAIL FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genertec Universal position performs unexpectedly, RETAIL FOOD 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 RETAIL FOOD will offset losses from the drop in RETAIL FOOD's long position.| Genertec Universal vs. COFCO Joycome Foods | Genertec Universal vs. CN MODERN DAIRY | Genertec Universal vs. AIR PRODCHEMICALS | Genertec Universal vs. SENECA FOODS A |
| RETAIL FOOD vs. MidCap Financial Investment | RETAIL FOOD vs. PennantPark Investment | RETAIL FOOD vs. CDL INVESTMENT | RETAIL FOOD vs. TITAN MACHINERY |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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