Correlation Between Genius and Jianzhi Education

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

By analyzing existing cross correlation between Genius Group and Jianzhi Education Technology, you can compare the effects of market volatilities on Genius and Jianzhi Education 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 Genius with a short position of Jianzhi Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius and Jianzhi Education.

Diversification Opportunities for Genius and Jianzhi Education

-0.43

Correlation Coefficient

Genius  Jianzhi Education

Very good diversification

The 3 months correlation between Genius and Jianzhi is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Genius Group and Jianzhi Education Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jianzhi Education and Genius 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 Genius Group are associated (or correlated) with Jianzhi Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jianzhi Education has no effect on the direction of Genius i.e., Genius and Jianzhi Education go up and down completely randomly.

Pair Corralation between Genius and Jianzhi Education

Considering the 90-day investment horizon Genius Group is expected to under-perform the Jianzhi Education. In addition to that, Genius is 1.33 times more volatile than Jianzhi Education Technology. It trades about -0.12 of its total potential returns per unit of risk. Jianzhi Education Technology is currently generating about 0.01 per unit of volatility. If you would invest  97.00  in Jianzhi Education Technology on December 28, 2024 and sell it today you would lose (10.00) from holding Jianzhi Education Technology or give up 10.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Genius Group  vs.  Jianzhi Education Technology

Genius Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genius Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Jianzhi Education

Risk-Adjusted Performance

Weak

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

Pair Trading with Genius and Jianzhi Education

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

The idea behind Genius Group and Jianzhi Education Technology 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.