Correlation Between Genesis Growth and Marine Products

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

By analyzing existing cross correlation between Genesis Growth Tech and Marine Products, you can compare the effects of market volatilities on Genesis Growth and Marine Products 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 Genesis Growth with a short position of Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesis Growth and Marine Products.

Diversification Opportunities for Genesis Growth and Marine Products

0.0

Correlation Coefficient

Genesis Growth  Marine Products

Pay attention - limited upside

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

Pair Corralation between Genesis Growth and Marine Products

If you would invest (100.00) in Genesis Growth Tech on October 24, 2024 and sell it today you would earn a total of  100.00  from holding Genesis Growth Tech 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

Genesis Growth Tech  vs.  Marine Products

Genesis Growth Tech

Risk-Adjusted Performance

0 of 100

Very Weak

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

Marine Products

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marine Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Marine Products is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Genesis Growth and Marine Products

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

The idea behind Genesis Growth Tech and Marine Products 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.