Correlation Between CCC SA and Genesco

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

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

Diversification Opportunities for CCC SA and Genesco

-0.63

Correlation Coefficient

CCC SA  Genesco

Excellent diversification

The 3 months correlation between CCC and Genesco is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding CCC SA and Genesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesco and CCC SA 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 CCC SA are associated (or correlated) with Genesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesco has no effect on the direction of CCC SA i.e., CCC SA and Genesco go up and down completely randomly.

Pair Corralation between CCC SA and Genesco

Assuming the 90 days horizon CCC SA is expected to under-perform the Genesco. But the stock apears to be less risky and, when comparing its historical volatility, CCC SA is 1.04 times less risky than Genesco. The stock trades about -0.02 of its potential returns per unit of risk. The Genesco is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  3,160  in Genesco on December 2, 2024 and sell it today you would earn a total of  320.00  from holding Genesco or generate 10.13% return on investment over 90 days.

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

CCC SA  vs.  Genesco

CCC SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days CCC SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CCC SA is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Genesco

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Genesco are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Genesco may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with CCC SA and Genesco

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

The idea behind CCC SA and Genesco 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.