Correlation Between Gemtek Technology and Sincere Navigation

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

By analyzing existing cross correlation between Gemtek Technology Co and Sincere Navigation Corp, you can compare the effects of market volatilities on Gemtek Technology and Sincere Navigation 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 Gemtek Technology with a short position of Sincere Navigation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemtek Technology and Sincere Navigation.

Diversification Opportunities for Gemtek Technology and Sincere Navigation

-0.09

Correlation Coefficient

Gemtek Technology  Sincere Navigation

Good diversification

The 3 months correlation between Gemtek and Sincere is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gemtek Technology Co and Sincere Navigation Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sincere Navigation Corp and Gemtek 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 Gemtek Technology Co are associated (or correlated) with Sincere Navigation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sincere Navigation Corp has no effect on the direction of Gemtek Technology i.e., Gemtek Technology and Sincere Navigation go up and down completely randomly.

Pair Corralation between Gemtek Technology and Sincere Navigation

Assuming the 90 days trading horizon Gemtek Technology Co is expected to under-perform the Sincere Navigation. But the stock apears to be less risky and, when comparing its historical volatility, Gemtek Technology Co is 1.52 times less risky than Sincere Navigation. The stock trades about -0.05 of its potential returns per unit of risk. The Sincere Navigation Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,515  in Sincere Navigation Corp on December 24, 2024 and sell it today you would earn a total of  195.00  from holding Sincere Navigation Corp or generate 7.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.25%
Values	Daily Returns

Gemtek Technology Co  vs.  Sincere Navigation Corp

Gemtek Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gemtek Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Gemtek Technology is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Sincere Navigation Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sincere Navigation Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Sincere Navigation may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Gemtek Technology and Sincere Navigation

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

The idea behind Gemtek Technology Co and Sincere Navigation Corp 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.