Correlation Between Impiana Hotels and Genetec Technology
Can any of the company-specific risk be diversified away by investing in both Impiana Hotels and Genetec 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 Impiana Hotels and Genetec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impiana Hotels Bhd and Genetec Technology Bhd, you can compare the effects of market volatilities on Impiana Hotels and Genetec 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 Impiana Hotels with a short position of Genetec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impiana Hotels and Genetec Technology.
Diversification Opportunities for Impiana Hotels and Genetec Technology
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Impiana and Genetec is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Impiana Hotels Bhd and Genetec Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genetec Technology Bhd and Impiana Hotels 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 Impiana Hotels Bhd are associated (or correlated) with Genetec Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genetec Technology Bhd has no effect on the direction of Impiana Hotels i.e., Impiana Hotels and Genetec Technology go up and down completely randomly.
Pair Corralation between Impiana Hotels and Genetec Technology
Assuming the 90 days trading horizon Impiana Hotels is expected to generate 54.2 times less return on investment than Genetec Technology. But when comparing it to its historical volatility, Impiana Hotels Bhd is 3.09 times less risky than Genetec Technology. It trades about 0.02 of its potential returns per unit of risk. Genetec Technology Bhd is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 69.00 in Genetec Technology Bhd on September 5, 2024 and sell it today you would earn a total of 56.00 from holding Genetec Technology Bhd or generate 81.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impiana Hotels Bhd vs. Genetec Technology Bhd
Performance |
| Timeline |
| Impiana Hotels Bhd |
| Genetec Technology Bhd |
Impiana Hotels and Genetec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impiana Hotels and Genetec Technology
The main advantage of trading using opposite Impiana Hotels and Genetec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impiana Hotels position performs unexpectedly, Genetec 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 Genetec Technology will offset losses from the drop in Genetec Technology's long position.| Impiana Hotels vs. Minetech Resources Bhd | Impiana Hotels vs. Swift Haulage Bhd | Impiana Hotels vs. Insas Bhd | Impiana Hotels vs. Bina Darulaman Bhd |
| Genetec Technology vs. DC HEALTHCARE HOLDINGS | Genetec Technology vs. Press Metal Bhd | Genetec Technology vs. Mycron Steel Bhd | Genetec Technology vs. Southern Steel Bhd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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