Correlation Between TIME Dotcom and Genetec Technology
Can any of the company-specific risk be diversified away by investing in both TIME Dotcom 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 TIME Dotcom and Genetec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TIME Dotcom Bhd and Genetec Technology Bhd, you can compare the effects of market volatilities on TIME Dotcom 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 TIME Dotcom with a short position of Genetec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIME Dotcom and Genetec Technology.
Diversification Opportunities for TIME Dotcom and Genetec Technology
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TIME and Genetec is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding TIME Dotcom 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 TIME Dotcom 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 TIME Dotcom 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 TIME Dotcom i.e., TIME Dotcom and Genetec Technology go up and down completely randomly.
Pair Corralation between TIME Dotcom and Genetec Technology
Assuming the 90 days trading horizon TIME Dotcom Bhd is expected to generate 0.31 times more return on investment than Genetec Technology. However, TIME Dotcom Bhd is 3.18 times less risky than Genetec Technology. It trades about 0.03 of its potential returns per unit of risk. Genetec Technology Bhd is currently generating about -0.02 per unit of risk. If you would invest 402.00 in TIME Dotcom Bhd on September 27, 2024 and sell it today you would earn a total of 61.00 from holding TIME Dotcom Bhd or generate 15.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
TIME Dotcom Bhd vs. Genetec Technology Bhd
Performance |
Timeline |
TIME Dotcom Bhd |
Genetec Technology Bhd |
TIME Dotcom and Genetec Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TIME Dotcom and Genetec Technology
The main advantage of trading using opposite TIME Dotcom and Genetec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIME Dotcom 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.TIME Dotcom vs. Axiata Group Bhd | TIME Dotcom vs. Telekom Malaysia Bhd | TIME Dotcom vs. Binasat Communications Bhd | TIME Dotcom vs. Scientex Bhd |
Genetec Technology vs. Greatech Technology Bhd | Genetec Technology vs. Uwc Bhd | Genetec Technology vs. PIE Industrial Bhd | Genetec Technology vs. Dufu Tech Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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