Correlation Between Tatung System and Genesis Technology
Can any of the company-specific risk be diversified away by investing in both Tatung System 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 Tatung System and Genesis Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tatung System Technologies and Genesis Technology, you can compare the effects of market volatilities on Tatung System 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 Tatung System with a short position of Genesis Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tatung System and Genesis Technology.
Diversification Opportunities for Tatung System and Genesis Technology
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tatung and Genesis is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Tatung System Technologies and Genesis Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Technology and Tatung System 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 Tatung System Technologies 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 Tatung System i.e., Tatung System and Genesis Technology go up and down completely randomly.
Pair Corralation between Tatung System and Genesis Technology
Assuming the 90 days trading horizon Tatung System Technologies is expected to under-perform the Genesis Technology. In addition to that, Tatung System is 8.49 times more volatile than Genesis Technology. It trades about -0.28 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tatung System Technologies vs. Genesis Technology
Performance |
| Timeline |
| Tatung System Techno |
| Genesis Technology |
Tatung System and Genesis Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tatung System and Genesis Technology
The main advantage of trading using opposite Tatung System and Genesis Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tatung System 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.| Tatung System vs. Genesis Technology | Tatung System vs. Syscom Computer Engineering | Tatung System 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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