Correlation Between Wan Hai and Genesyslogic

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

By analyzing existing cross correlation between Wan Hai Lines and Genesyslogic, you can compare the effects of market volatilities on Wan Hai and Genesyslogic 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 Wan Hai with a short position of Genesyslogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wan Hai and Genesyslogic.

Diversification Opportunities for Wan Hai and Genesyslogic

-0.42

Correlation Coefficient

Wan Hai  Genesyslogic

Very good diversification

The 3 months correlation between Wan and Genesyslogic is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Wan Hai Lines and Genesyslogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesyslogic and Wan Hai 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 Wan Hai Lines are associated (or correlated) with Genesyslogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesyslogic has no effect on the direction of Wan Hai i.e., Wan Hai and Genesyslogic go up and down completely randomly.

Pair Corralation between Wan Hai and Genesyslogic

Assuming the 90 days trading horizon Wan Hai Lines is expected to under-perform the Genesyslogic. But the stock apears to be less risky and, when comparing its historical volatility, Wan Hai Lines is 2.14 times less risky than Genesyslogic. The stock trades about -0.1 of its potential returns per unit of risk. The Genesyslogic is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest  13,150  in Genesyslogic on September 28, 2024 and sell it today you would earn a total of  4,550  from holding Genesyslogic or generate 34.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Wan Hai Lines  vs.  Genesyslogic

Wan Hai Lines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wan Hai Lines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Genesyslogic

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Genesyslogic are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Genesyslogic showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wan Hai and Genesyslogic

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

The idea behind Wan Hai Lines and Genesyslogic 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.