Correlation Between Genesis Technology and An Shin

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

By analyzing existing cross correlation between Genesis Technology and An Shin Food Services, you can compare the effects of market volatilities on Genesis Technology and An Shin 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 Genesis Technology with a short position of An Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesis Technology and An Shin.

Diversification Opportunities for Genesis Technology and An Shin

0.78

Correlation Coefficient

Genesis Technology  An Shin

Poor diversification

The 3 months correlation between Genesis and 1259 is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Genesis Technology and An Shin Food Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Shin Food and Genesis 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 Genesis Technology are associated (or correlated) with An Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Shin Food has no effect on the direction of Genesis Technology i.e., Genesis Technology and An Shin go up and down completely randomly.

Pair Corralation between Genesis Technology and An Shin

Assuming the 90 days trading horizon Genesis Technology is expected to under-perform the An Shin. In addition to that, Genesis Technology is 6.24 times more volatile than An Shin Food Services. It trades about -0.09 of its total potential returns per unit of risk. An Shin Food Services is currently generating about -0.21 per unit of volatility. If you would invest  6,860  in An Shin Food Services on September 12, 2024 and sell it today you would lose (440.00) from holding An Shin Food Services or give up 6.41% of portfolio value over 90 days.

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

Genesis Technology  vs.  An Shin Food Services

Genesis Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genesis Technology 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.

An Shin Food

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days An Shin Food Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Genesis Technology and An Shin

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

The idea behind Genesis Technology and An Shin Food Services 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.