Correlation Between Energenesis Biomedical and Great Computer
Can any of the company-specific risk be diversified away by investing in both Energenesis Biomedical and Great Computer 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 Energenesis Biomedical and Great Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energenesis Biomedical Co and Great Computer, you can compare the effects of market volatilities on Energenesis Biomedical and Great Computer 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 Energenesis Biomedical with a short position of Great Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energenesis Biomedical and Great Computer.
Diversification Opportunities for Energenesis Biomedical and Great Computer
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Energenesis and Great is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Energenesis Biomedical Co and Great Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Computer and Energenesis Biomedical 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 Energenesis Biomedical Co are associated (or correlated) with Great Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Computer has no effect on the direction of Energenesis Biomedical i.e., Energenesis Biomedical and Great Computer go up and down completely randomly.
Pair Corralation between Energenesis Biomedical and Great Computer
Assuming the 90 days trading horizon Energenesis Biomedical Co is expected to under-perform the Great Computer. But the stock apears to be less risky and, when comparing its historical volatility, Energenesis Biomedical Co is 30.97 times less risky than Great Computer. The stock trades about -0.03 of its potential returns per unit of risk. The Great Computer is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,155 in Great Computer on October 27, 2024 and sell it today you would earn a total of 640.00 from holding Great Computer or generate 55.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energenesis Biomedical Co vs. Great Computer
Performance |
| Timeline |
| Energenesis Biomedical |
| Great Computer |
Energenesis Biomedical and Great Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energenesis Biomedical and Great Computer
The main advantage of trading using opposite Energenesis Biomedical and Great Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energenesis Biomedical position performs unexpectedly, Great Computer 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 Great Computer will offset losses from the drop in Great Computer's long position.| Energenesis Biomedical vs. Taiwan Semiconductor Manufacturing | Energenesis Biomedical vs. Hon Hai Precision | Energenesis Biomedical vs. MediaTek | Energenesis Biomedical vs. Chunghwa Telecom Co |
| Great Computer vs. Tai Tung Communication | Great Computer vs. Taiwan Mobile Co | Great Computer vs. Far EasTone Telecommunications | Great Computer vs. Tainet Communication 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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