Correlation Between Genius Brands and Hall Of

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

By analyzing existing cross correlation between Genius Brands International and Hall of Fame, you can compare the effects of market volatilities on Genius Brands and Hall Of 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 Brands with a short position of Hall Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Brands and Hall Of.

Diversification Opportunities for Genius Brands and Hall Of

-0.12

Correlation Coefficient

Genius Brands  Hall Of

Good diversification

The 3 months correlation between Genius and Hall is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Genius Brands International and Hall of Fame in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hall of Fame and Genius Brands 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 Brands International are associated (or correlated) with Hall Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hall of Fame has no effect on the direction of Genius Brands i.e., Genius Brands and Hall Of go up and down completely randomly.

Pair Corralation between Genius Brands and Hall Of

Given the investment horizon of 90 days Genius Brands International is expected to under-perform the Hall Of. But the stock apears to be less risky and, when comparing its historical volatility, Genius Brands International is 9.74 times less risky than Hall Of. The stock trades about -0.04 of its potential returns per unit of risk. The Hall of Fame is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  4.99  in Hall of Fame on September 24, 2024 and sell it today you would lose (4.53) from holding Hall of Fame or give up 90.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	25.21%
Values	Daily Returns

Genius Brands International  vs.  Hall of Fame

Genius Brands Intern

Risk-Adjusted Performance

0 of 100

Very Weak

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

Hall of Fame

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hall of Fame are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Hall Of showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genius Brands and Hall Of

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

The idea behind Genius Brands International and Hall of Fame 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.