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

-0.5

Correlation Coefficient

CCC SA  Genesco

Very good diversification

The 3 months correlation between CCC and Genesco is -0.5. 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 generate 0.68 times more return on investment than Genesco. However, CCC SA is 1.48 times less risky than Genesco. It trades about 0.14 of its potential returns per unit of risk. Genesco is currently generating about -0.22 per unit of risk. If you would invest  4,306  in CCC SA on December 28, 2024 and sell it today you would earn a total of  1,054  from holding CCC SA or generate 24.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

CCC SA  vs.  Genesco

CCC SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CCC SA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, CCC SA reported solid returns over the last few months and may actually be approaching a breakup point.

Genesco

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genesco has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.