Correlation Between Dexon Technology and Genesis Fertility
Can any of the company-specific risk be diversified away by investing in both Dexon Technology and Genesis Fertility 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 Dexon Technology and Genesis Fertility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dexon Technology PCL and Genesis Fertility Center, you can compare the effects of market volatilities on Dexon Technology and Genesis Fertility 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 Dexon Technology with a short position of Genesis Fertility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexon Technology and Genesis Fertility.
Diversification Opportunities for Dexon Technology and Genesis Fertility
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dexon and Genesis is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dexon Technology PCL and Genesis Fertility Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Fertility Center and Dexon Technology 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 Dexon Technology PCL are associated (or correlated) with Genesis Fertility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Fertility Center has no effect on the direction of Dexon Technology i.e., Dexon Technology and Genesis Fertility go up and down completely randomly.
Pair Corralation between Dexon Technology and Genesis Fertility
Assuming the 90 days trading horizon Dexon Technology is expected to generate 1.41 times less return on investment than Genesis Fertility. But when comparing it to its historical volatility, Dexon Technology PCL is 1.15 times less risky than Genesis Fertility. It trades about 0.04 of its potential returns per unit of risk. Genesis Fertility Center is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,013 in Genesis Fertility Center on November 2, 2024 and sell it today you would lose (363.00) from holding Genesis Fertility Center or give up 35.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 75.84% |
| Values | Daily Returns |
Dexon Technology PCL vs. Genesis Fertility Center
Performance |
| Timeline |
| Dexon Technology PCL |
| Genesis Fertility Center |
Dexon Technology and Genesis Fertility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dexon Technology and Genesis Fertility
The main advantage of trading using opposite Dexon Technology and Genesis Fertility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexon Technology position performs unexpectedly, Genesis Fertility 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 Fertility will offset losses from the drop in Genesis Fertility's long position.| Dexon Technology vs. Halcyon Technology Public | Dexon Technology vs. Silicon Craft Technology | Dexon Technology vs. Asia Hotel Public | Dexon Technology vs. Planet Communications Asia |
| Genesis Fertility vs. Tanachira Retail | Genesis Fertility vs. Mena Transport Public | Genesis Fertility vs. Syntec Construction Public | Genesis Fertility vs. TRV Rubber Products |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |