Correlation Between Excite Technology and Bio Gene
Can any of the company-specific risk be diversified away by investing in both Excite Technology and Bio Gene 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 Excite Technology and Bio Gene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excite Technology Services and Bio Gene Technology, you can compare the effects of market volatilities on Excite Technology and Bio Gene 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 Excite Technology with a short position of Bio Gene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excite Technology and Bio Gene.
Diversification Opportunities for Excite Technology and Bio Gene
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Excite and Bio is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Excite Technology Services and Bio Gene Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Gene Technology and Excite 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 Excite Technology Services are associated (or correlated) with Bio Gene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Gene Technology has no effect on the direction of Excite Technology i.e., Excite Technology and Bio Gene go up and down completely randomly.
Pair Corralation between Excite Technology and Bio Gene
Assuming the 90 days trading horizon Excite Technology Services is expected to generate 1.52 times more return on investment than Bio Gene. However, Excite Technology is 1.52 times more volatile than Bio Gene Technology. It trades about 0.07 of its potential returns per unit of risk. Bio Gene Technology is currently generating about 0.0 per unit of risk. If you would invest 0.60 in Excite Technology Services on November 27, 2024 and sell it today you would earn a total of 1.10 from holding Excite Technology Services or generate 183.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Excite Technology Services vs. Bio Gene Technology
Performance |
| Timeline |
| Excite Technology |
| Bio Gene Technology |
Excite Technology and Bio Gene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excite Technology and Bio Gene
The main advantage of trading using opposite Excite Technology and Bio Gene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excite Technology position performs unexpectedly, Bio Gene 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 Bio Gene will offset losses from the drop in Bio Gene's long position.| Excite Technology vs. Mirrabooka Investments | Excite Technology vs. Alternative Investment Trust | Excite Technology vs. Sports Entertainment Group | Excite Technology vs. Autosports Group |
| Bio Gene vs. Retail Food Group | Bio Gene vs. The Environmental Group | Bio Gene vs. Mount Gibson Iron | Bio Gene vs. Sandon Capital Investments |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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