Correlation Between GAZTRTECHNIUADR15EO01 and Genertec Universal

Can any of the company-specific risk be diversified away by investing in both GAZTRTECHNIUADR15EO01 and Genertec Universal 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 GAZTRTECHNIUADR15EO01 and Genertec Universal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GAZTRTECHNIUADR15EO01 and Genertec Universal Medical, you can compare the effects of market volatilities on GAZTRTECHNIUADR15EO01 and Genertec Universal 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 GAZTRTECHNIUADR15EO01 with a short position of Genertec Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAZTRTECHNIUADR15EO01 and Genertec Universal.

Diversification Opportunities for GAZTRTECHNIUADR15EO01 and Genertec Universal

0.5

Correlation Coefficient

GAZTRTECHNIUADR15EO01  Genertec Universal

Very weak diversification

The 3 months correlation between GAZTRTECHNIUADR15EO01 and Genertec is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding GAZTRTECHNIUADR15EO01 and Genertec Universal Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genertec Universal and GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 are associated (or correlated) with Genertec Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genertec Universal has no effect on the direction of GAZTRTECHNIUADR15EO01 i.e., GAZTRTECHNIUADR15EO01 and Genertec Universal go up and down completely randomly.

Pair Corralation between GAZTRTECHNIUADR15EO01 and Genertec Universal

Assuming the 90 days trading horizon GAZTRTECHNIUADR15EO01 is expected to generate 1.96 times less return on investment than Genertec Universal. But when comparing it to its historical volatility, GAZTRTECHNIUADR15EO01 is 1.19 times less risky than Genertec Universal. It trades about 0.12 of its potential returns per unit of risk. Genertec Universal Medical is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  54.00  in Genertec Universal Medical on May 4, 2025 and sell it today you would earn a total of  15.00  from holding Genertec Universal Medical or generate 27.78% return on investment over 90 days.

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

GAZTRTECHNIUADR15EO01  vs.  Genertec Universal Medical

GAZTRTECHNIUADR15EO01

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GAZTRTECHNIUADR15EO01 are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, GAZTRTECHNIUADR15EO01 reported solid returns over the last few months and may actually be approaching a breakup point.

Genertec Universal

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Genertec Universal Medical are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Genertec Universal reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GAZTRTECHNIUADR15EO01 and Genertec Universal

The main advantage of trading using opposite GAZTRTECHNIUADR15EO01 and Genertec Universal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAZTRTECHNIUADR15EO01 position performs unexpectedly, Genertec Universal 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 Genertec Universal will offset losses from the drop in Genertec Universal's long position.

The idea behind GAZTRTECHNIUADR15EO01 and Genertec Universal Medical 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.