Correlation Between JF Technology and Genetec Technology
Can any of the company-specific risk be diversified away by investing in both JF Technology 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 JF Technology and Genetec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JF Technology BHD and Genetec Technology Bhd, you can compare the effects of market volatilities on JF Technology 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 JF Technology with a short position of Genetec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of JF Technology and Genetec Technology.
Diversification Opportunities for JF Technology and Genetec Technology
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0146 and Genetec is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding JF Technology 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 JF 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 JF Technology 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 JF Technology i.e., JF Technology and Genetec Technology go up and down completely randomly.
Pair Corralation between JF Technology and Genetec Technology
Assuming the 90 days trading horizon JF Technology BHD is expected to generate 2.29 times more return on investment than Genetec Technology. However, JF Technology is 2.29 times more volatile than Genetec Technology Bhd. It trades about 0.29 of its potential returns per unit of risk. Genetec Technology Bhd is currently generating about 0.15 per unit of risk. If you would invest 53.00 in JF Technology BHD on October 4, 2024 and sell it today you would earn a total of 28.00 from holding JF Technology BHD or generate 52.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
JF Technology BHD vs. Genetec Technology Bhd
Performance |
Timeline |
JF Technology BHD |
Genetec Technology Bhd |
JF Technology and Genetec Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JF Technology and Genetec Technology
The main advantage of trading using opposite JF Technology and Genetec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JF Technology 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.JF Technology vs. Greatech Technology Bhd | JF Technology vs. Genetec Technology Bhd | JF Technology vs. PIE Industrial Bhd | JF Technology vs. Dufu Tech Corp |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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