Correlation Between Generationome Properties and HR Real

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

By analyzing existing cross correlation between Generationome Properties and HR Real Estate, you can compare the effects of market volatilities on Generationome Properties and HR Real 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 Generationome Properties with a short position of HR Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generationome Properties and HR Real.

Diversification Opportunities for Generationome Properties and HR Real

0.83

Correlation Coefficient

Generationome Properties  HR Real

Very poor diversification

The 3 months correlation between Generationome and HRUFF is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Generationome Properties and HR Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HR Real Estate and Generationome Properties 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 Generationome Properties are associated (or correlated) with HR Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HR Real Estate has no effect on the direction of Generationome Properties i.e., Generationome Properties and HR Real go up and down completely randomly.

Pair Corralation between Generationome Properties and HR Real

Given the investment horizon of 90 days Generationome Properties is expected to generate 2.14 times more return on investment than HR Real. However, Generationome Properties is 2.14 times more volatile than HR Real Estate. It trades about -0.07 of its potential returns per unit of risk. HR Real Estate is currently generating about -0.26 per unit of risk. If you would invest  223.00  in Generationome Properties on September 13, 2024 and sell it today you would lose (30.00) from holding Generationome Properties or give up 13.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Generationome Properties  vs.  HR Real Estate

Generationome Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Generationome Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

HR Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HR Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Generationome Properties and HR Real

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

The idea behind Generationome Properties and HR Real Estate 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.