Correlation Between Gemtek Technology and Wha Yu

Can any of the company-specific risk be diversified away by investing in both Gemtek Technology and Wha Yu 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 Wha Yu 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 Wha Yu Industrial, you can compare the effects of market volatilities on Gemtek Technology and Wha Yu 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 Wha Yu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemtek Technology and Wha Yu.

Diversification Opportunities for Gemtek Technology and Wha Yu

-0.31

Correlation Coefficient

Gemtek Technology  Wha Yu

Very good diversification

The 3 months correlation between Gemtek and Wha is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gemtek Technology Co and Wha Yu Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wha Yu Industrial 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 Wha Yu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wha Yu Industrial has no effect on the direction of Gemtek Technology i.e., Gemtek Technology and Wha Yu go up and down completely randomly.

Pair Corralation between Gemtek Technology and Wha Yu

Assuming the 90 days trading horizon Gemtek Technology Co is expected to generate 1.03 times more return on investment than Wha Yu. However, Gemtek Technology is 1.03 times more volatile than Wha Yu Industrial. It trades about 0.03 of its potential returns per unit of risk. Wha Yu Industrial is currently generating about 0.01 per unit of risk. If you would invest  2,790  in Gemtek Technology Co on September 26, 2024 and sell it today you would earn a total of  625.00  from holding Gemtek Technology Co or generate 22.4% return on investment over 90 days.

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

Gemtek Technology Co  vs.  Wha Yu Industrial

Gemtek Technology

Risk-Adjusted Performance

0 of 100

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 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.

Wha Yu Industrial

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Wha Yu Industrial are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Wha Yu may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Gemtek Technology and Wha Yu

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

The idea behind Gemtek Technology Co and Wha Yu Industrial 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.