Correlation Between GEN Restaurant and Social Media

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

By analyzing existing cross correlation between GEN Restaurant Group, and Social Media Venture, you can compare the effects of market volatilities on GEN Restaurant and Social Media 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 GEN Restaurant with a short position of Social Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and Social Media.

Diversification Opportunities for GEN Restaurant and Social Media

0.0

Correlation Coefficient

GEN Restaurant  Social Media

Pay attention - limited upside

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

Pair Corralation between GEN Restaurant and Social Media

If you would invest (100.00) in Social Media Venture on December 18, 2024 and sell it today you would earn a total of  100.00  from holding Social Media Venture or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

GEN Restaurant Group,  vs.  Social Media Venture

GEN Restaurant Group,

Risk-Adjusted Performance

Very Weak

Over the last 90 days GEN Restaurant Group, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Social Media Venture

Risk-Adjusted Performance

Very Weak

Over the last 90 days Social Media Venture has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Social Media is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with GEN Restaurant and Social Media

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

The idea behind GEN Restaurant Group, and Social Media Venture 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.