Correlation Between Chicken Soup and Genius Brands

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

By analyzing existing cross correlation between Chicken Soup For and Genius Brands International, you can compare the effects of market volatilities on Chicken Soup and Genius Brands 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 Chicken Soup with a short position of Genius Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicken Soup and Genius Brands.

Diversification Opportunities for Chicken Soup and Genius Brands

0.0

Correlation Coefficient

Chicken Soup  Genius Brands

Pay attention - limited upside

The 3 months correlation between Chicken and Genius is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chicken Soup For and Genius Brands International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Brands Intern and Chicken Soup 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 Chicken Soup For are associated (or correlated) with Genius Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genius Brands Intern has no effect on the direction of Chicken Soup i.e., Chicken Soup and Genius Brands go up and down completely randomly.

Pair Corralation between Chicken Soup and Genius Brands

If you would invest (100.00) in Genius Brands International on November 28, 2024 and sell it today you would earn a total of  100.00  from holding Genius Brands International or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Chicken Soup For  vs.  Genius Brands International

Chicken Soup For

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chicken Soup For has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Chicken Soup is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Genius Brands Intern

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genius Brands International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Genius Brands is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Chicken Soup and Genius Brands

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

The idea behind Chicken Soup For and Genius Brands International 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.