Correlation Between Genting Berhad and Adobe Systems
Can any of the company-specific risk be diversified away by investing in both Genting Berhad and Adobe Systems 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 Genting Berhad and Adobe Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genting Berhad and Adobe Systems Incorporated, you can compare the effects of market volatilities on Genting Berhad and Adobe Systems 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 Genting Berhad with a short position of Adobe Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genting Berhad and Adobe Systems.
Diversification Opportunities for Genting Berhad and Adobe Systems
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genting and Adobe is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Genting Berhad and Adobe Systems Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adobe Systems and Genting Berhad 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 Genting Berhad are associated (or correlated) with Adobe Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adobe Systems has no effect on the direction of Genting Berhad i.e., Genting Berhad and Adobe Systems go up and down completely randomly.
Pair Corralation between Genting Berhad and Adobe Systems
Assuming the 90 days horizon Genting Berhad is expected to generate 1.47 times more return on investment than Adobe Systems. However, Genting Berhad is 1.47 times more volatile than Adobe Systems Incorporated. It trades about 0.09 of its potential returns per unit of risk. Adobe Systems Incorporated is currently generating about -0.06 per unit of risk. If you would invest 68.00 in Genting Berhad on September 3, 2025 and sell it today you would earn a total of 9.00 from holding Genting Berhad or generate 13.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genting Berhad vs. Adobe Systems Incorporated
Performance |
| Timeline |
| Genting Berhad |
| Adobe Systems |
Genting Berhad and Adobe Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genting Berhad and Adobe Systems
The main advantage of trading using opposite Genting Berhad and Adobe Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genting Berhad position performs unexpectedly, Adobe Systems 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 Adobe Systems will offset losses from the drop in Adobe Systems' long position.| Genting Berhad vs. China Petroleum Chemical | Genting Berhad vs. Silicon Motion Technology | Genting Berhad vs. Malaga Financial | Genting Berhad vs. Aldel Financial II |
| Adobe Systems vs. The Dewey Electronics | Adobe Systems vs. United Microelectronics | Adobe Systems vs. Jaco Electronics | Adobe Systems vs. BOS Better Online |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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