Correlation Between Dataprep Holdings and Genetec Technology
Can any of the company-specific risk be diversified away by investing in both Dataprep Holdings 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 Dataprep Holdings and Genetec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dataprep Holdings Bhd and Genetec Technology Bhd, you can compare the effects of market volatilities on Dataprep Holdings 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 Dataprep Holdings with a short position of Genetec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dataprep Holdings and Genetec Technology.
Diversification Opportunities for Dataprep Holdings and Genetec Technology
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dataprep and Genetec is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Dataprep Holdings 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 Dataprep Holdings 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 Dataprep Holdings 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 Dataprep Holdings i.e., Dataprep Holdings and Genetec Technology go up and down completely randomly.
Pair Corralation between Dataprep Holdings and Genetec Technology
Assuming the 90 days trading horizon Dataprep Holdings Bhd is expected to generate 0.86 times more return on investment than Genetec Technology. However, Dataprep Holdings Bhd is 1.17 times less risky than Genetec Technology. It trades about 0.0 of its potential returns per unit of risk. Genetec Technology Bhd is currently generating about -0.04 per unit of risk. If you would invest 16.00 in Dataprep Holdings Bhd on October 17, 2024 and sell it today you would lose (2.00) from holding Dataprep Holdings Bhd or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dataprep Holdings Bhd vs. Genetec Technology Bhd
Performance |
| Timeline |
| Dataprep Holdings Bhd |
| Genetec Technology Bhd |
Dataprep Holdings and Genetec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dataprep Holdings and Genetec Technology
The main advantage of trading using opposite Dataprep Holdings and Genetec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dataprep Holdings 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.| Dataprep Holdings vs. Riverview Rubber Estates | Dataprep Holdings vs. Bank Islam Malaysia | Dataprep Holdings vs. Impiana Hotels Bhd | Dataprep Holdings vs. Sports Toto Berhad |
| Genetec Technology vs. K One Technology Bhd | Genetec Technology vs. Senheng New Retail | Genetec Technology vs. Dataprep Holdings Bhd | Genetec Technology vs. Shangri La 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |