Correlation Between Shenzhen Genvict and Genus Power

Can any of the company-specific risk be diversified away by investing in both Shenzhen Genvict and Genus Power 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 Shenzhen Genvict and Genus Power into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shenzhen Genvict Technologies and Genus Power Infrastructures, you can compare the effects of market volatilities on Shenzhen Genvict and Genus Power 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 Shenzhen Genvict with a short position of Genus Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Genvict and Genus Power.

Diversification Opportunities for Shenzhen Genvict and Genus Power

0.19

Correlation Coefficient

Shenzhen Genvict  Genus Power

Average diversification

The 3 months correlation between Shenzhen and Genus is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Genvict Technologies and Genus Power Infrastructures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genus Power Infrastr and Shenzhen Genvict 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 Shenzhen Genvict Technologies are associated (or correlated) with Genus Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genus Power Infrastr has no effect on the direction of Shenzhen Genvict i.e., Shenzhen Genvict and Genus Power go up and down completely randomly.

Pair Corralation between Shenzhen Genvict and Genus Power

Assuming the 90 days trading horizon Shenzhen Genvict Technologies is expected to generate 0.72 times more return on investment than Genus Power. However, Shenzhen Genvict Technologies is 1.4 times less risky than Genus Power. It trades about -0.06 of its potential returns per unit of risk. Genus Power Infrastructures is currently generating about -0.25 per unit of risk. If you would invest  3,052  in Shenzhen Genvict Technologies on December 1, 2024 and sell it today you would lose (301.00) from holding Shenzhen Genvict Technologies or give up 9.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	93.55%
Values	Daily Returns

Shenzhen Genvict Technologies  vs.  Genus Power Infrastructures

Shenzhen Genvict Tec

Risk-Adjusted Performance

Very Weak

Over the last 90 days Shenzhen Genvict Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Genus Power Infrastr

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genus Power Infrastructures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Shenzhen Genvict and Genus Power

The main advantage of trading using opposite Shenzhen Genvict and Genus Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Genvict position performs unexpectedly, Genus Power 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 Genus Power will offset losses from the drop in Genus Power's long position.

The idea behind Shenzhen Genvict Technologies and Genus Power Infrastructures pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.