Correlation Between Genetec Technology and Nexgram Holdings
Can any of the company-specific risk be diversified away by investing in both Genetec Technology and Nexgram Holdings 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 Genetec Technology and Nexgram Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genetec Technology Bhd and Nexgram Holdings Bhd, you can compare the effects of market volatilities on Genetec Technology and Nexgram Holdings 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 Genetec Technology with a short position of Nexgram Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetec Technology and Nexgram Holdings.
Diversification Opportunities for Genetec Technology and Nexgram Holdings
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Genetec and Nexgram is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Genetec Technology Bhd and Nexgram Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexgram Holdings Bhd and Genetec 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 Genetec Technology Bhd are associated (or correlated) with Nexgram Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexgram Holdings Bhd has no effect on the direction of Genetec Technology i.e., Genetec Technology and Nexgram Holdings go up and down completely randomly.
Pair Corralation between Genetec Technology and Nexgram Holdings
Assuming the 90 days trading horizon Genetec Technology Bhd is expected to generate 0.48 times more return on investment than Nexgram Holdings. However, Genetec Technology Bhd is 2.11 times less risky than Nexgram Holdings. It trades about 0.21 of its potential returns per unit of risk. Nexgram Holdings Bhd is currently generating about 0.05 per unit of risk. If you would invest 72.00 in Genetec Technology Bhd on September 26, 2024 and sell it today you would earn a total of 58.00 from holding Genetec Technology Bhd or generate 80.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 97.62% |
Values | Daily Returns |
Genetec Technology Bhd vs. Nexgram Holdings Bhd
Performance |
Timeline |
Genetec Technology Bhd |
Nexgram Holdings Bhd |
Genetec Technology and Nexgram Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genetec Technology and Nexgram Holdings
The main advantage of trading using opposite Genetec Technology and Nexgram Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetec Technology position performs unexpectedly, Nexgram Holdings 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 Nexgram Holdings will offset losses from the drop in Nexgram Holdings' long position.Genetec Technology vs. Radiant Globaltech Bhd | Genetec Technology vs. K One Technology Bhd | Genetec Technology vs. Uchi Technologies Bhd | Genetec Technology vs. SFP Tech Holdings |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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