Correlation Between Green World and Genesis Technology
Can any of the company-specific risk be diversified away by investing in both Green World 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 Green World and Genesis Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green World Fintech and Genesis Technology, you can compare the effects of market volatilities on Green World 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 Green World with a short position of Genesis Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green World and Genesis Technology.
Diversification Opportunities for Green World and Genesis Technology
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Green and Genesis is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Green World Fintech and Genesis Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Technology and Green World 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 Green World Fintech 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 Green World i.e., Green World and Genesis Technology go up and down completely randomly.
Pair Corralation between Green World and Genesis Technology
Assuming the 90 days trading horizon Green World Fintech is expected to under-perform the Genesis Technology. In addition to that, Green World is 19.89 times more volatile than Genesis Technology. It trades about -0.2 of its total potential returns per unit of risk. Genesis Technology is currently generating about -0.45 per unit of volatility. If you would invest 6,720 in Genesis Technology on August 24, 2024 and sell it today you would lose (150.00) from holding Genesis Technology or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green World Fintech vs. Genesis Technology
Performance |
| Timeline |
| Green World Fintech |
| Genesis Technology |
Green World and Genesis Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green World and Genesis Technology
The main advantage of trading using opposite Green World and Genesis Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green World 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.| Green World vs. Genesis Technology | Green World vs. Syscom Computer Engineering | Green World vs. Jetwell Computer Co |
| Genesis Technology vs. Landis Taipei Hotel | Genesis Technology vs. First Hotel Co | Genesis Technology vs. Feng Hsin Steel | Genesis Technology vs. Formosa International Hotels |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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