Correlation Between Four Seasons and Genius

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

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

Diversification Opportunities for Four Seasons and Genius

0.59

Correlation Coefficient

Four Seasons  Genius

Very weak diversification

The 3 months correlation between Four and Genius is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Four Seasons Education and Genius Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Group and Four Seasons 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 Four Seasons Education are associated (or correlated) with Genius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genius Group has no effect on the direction of Four Seasons i.e., Four Seasons and Genius go up and down completely randomly.

Pair Corralation between Four Seasons and Genius

Given the investment horizon of 90 days Four Seasons Education is expected to generate 0.54 times more return on investment than Genius. However, Four Seasons Education is 1.85 times less risky than Genius. It trades about 0.0 of its potential returns per unit of risk. Genius Group is currently generating about -0.08 per unit of risk. If you would invest  1,010  in Four Seasons Education on December 27, 2024 and sell it today you would lose (85.00) from holding Four Seasons Education or give up 8.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

Four Seasons Education  vs.  Genius Group

Four Seasons Education

Risk-Adjusted Performance

Very Weak

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

Genius Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genius Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Four Seasons and Genius

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

The idea behind Four Seasons Education and Genius Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.