Correlation Between Bank Central and Genesis Growth
Can any of the company-specific risk be diversified away by investing in both Bank Central and Genesis Growth 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 Bank Central and Genesis Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Genesis Growth Tech, you can compare the effects of market volatilities on Bank Central and Genesis Growth 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 Bank Central with a short position of Genesis Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Genesis Growth.
Diversification Opportunities for Bank Central and Genesis Growth
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Genesis is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Genesis Growth Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Growth Tech and Bank Central 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 Bank Central Asia are associated (or correlated) with Genesis Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Growth Tech has no effect on the direction of Bank Central i.e., Bank Central and Genesis Growth go up and down completely randomly.
Pair Corralation between Bank Central and Genesis Growth
If you would invest 2,157 in Genesis Growth Tech on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Genesis Growth Tech or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Central Asia vs. Genesis Growth Tech
Performance |
| Timeline |
| Bank Central Asia |
| Genesis Growth Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Central and Genesis Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Genesis Growth
The main advantage of trading using opposite Bank Central and Genesis Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Genesis Growth 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 Growth will offset losses from the drop in Genesis Growth's long position.| Bank Central vs. Nedbank Group | Bank Central vs. Standard Bank Group | Bank Central vs. Kasikornbank Public Co | Bank Central vs. KBC Groep NV |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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