Correlation Between GEN Restaurant and Wienerberger

Can any of the company-specific risk be diversified away by investing in both GEN Restaurant and Wienerberger 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 Wienerberger 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 Wienerberger AG, you can compare the effects of market volatilities on GEN Restaurant and Wienerberger 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 Wienerberger. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and Wienerberger.

Diversification Opportunities for GEN Restaurant and Wienerberger

0.0

Correlation Coefficient

GEN Restaurant  Wienerberger

Pay attention - limited upside

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

Pair Corralation between GEN Restaurant and Wienerberger

Given the investment horizon of 90 days GEN Restaurant Group, is expected to generate 35.7 times more return on investment than Wienerberger. However, GEN Restaurant is 35.7 times more volatile than Wienerberger AG. It trades about 0.05 of its potential returns per unit of risk. Wienerberger AG is currently generating about 0.03 per unit of risk. If you would invest  0.00  in GEN Restaurant Group, on October 25, 2024 and sell it today you would earn a total of  680.00  from holding GEN Restaurant Group, or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	80.05%
Values	Daily Returns

GEN Restaurant Group,  vs.  Wienerberger AG

GEN Restaurant Group,

Risk-Adjusted Performance

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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 uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Wienerberger AG

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with GEN Restaurant and Wienerberger

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

The idea behind GEN Restaurant Group, and Wienerberger AG 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.