Correlation Between Generationome Properties and New England

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

By analyzing existing cross correlation between Generationome Properties and New England Realty, you can compare the effects of market volatilities on Generationome Properties and New England 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 New England. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generationome Properties and New England.

Diversification Opportunities for Generationome Properties and New England

-0.6

Correlation Coefficient

Generationome Properties  New England

Excellent diversification

The 3 months correlation between Generationome and New is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Generationome Properties and New England Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New England Realty 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 New England. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New England Realty has no effect on the direction of Generationome Properties i.e., Generationome Properties and New England go up and down completely randomly.

Pair Corralation between Generationome Properties and New England

Given the investment horizon of 90 days Generationome Properties is expected to under-perform the New England. But the stock apears to be less risky and, when comparing its historical volatility, Generationome Properties is 1.3 times less risky than New England. The stock trades about -0.01 of its potential returns per unit of risk. The New England Realty is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  8,274  in New England Realty on November 29, 2024 and sell it today you would lose (74.00) from holding New England Realty or give up 0.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	23.73%
Values	Daily Returns

Generationome Properties  vs.  New England Realty

Generationome Properties

Risk-Adjusted Performance

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 relatively invariable basic indicators, Generationome Properties is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

New England Realty

Risk-Adjusted Performance

Very Weak

Over the last 90 days New England Realty has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, New England is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Generationome Properties and New England

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

The idea behind Generationome Properties and New England Realty 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.