Correlation Between Genius Brands and New Wave
Can any of the company-specific risk be diversified away by investing in both Genius Brands and New Wave 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 New Wave 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 New Wave Holdings, you can compare the effects of market volatilities on Genius Brands and New Wave 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 New Wave. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Brands and New Wave.
Diversification Opportunities for Genius Brands and New Wave
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genius and New is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Genius Brands International and New Wave Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Wave Holdings 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 New Wave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Wave Holdings has no effect on the direction of Genius Brands i.e., Genius Brands and New Wave go up and down completely randomly.
Pair Corralation between Genius Brands and New Wave
Given the investment horizon of 90 days Genius Brands International is expected to under-perform the New Wave. But the stock apears to be less risky and, when comparing its historical volatility, Genius Brands International is 9.65 times less risky than New Wave. The stock trades about -0.04 of its potential returns per unit of risk. The New Wave Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1.47 in New Wave Holdings on September 24, 2024 and sell it today you would earn a total of 0.31 from holding New Wave Holdings or generate 21.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 24.1% |
Values | Daily Returns |
Genius Brands International vs. New Wave Holdings
Performance |
Timeline |
Genius Brands Intern |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
New Wave Holdings |
Genius Brands and New Wave Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genius Brands and New Wave
The main advantage of trading using opposite Genius Brands and New Wave positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Brands position performs unexpectedly, New Wave 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 Wave will offset losses from the drop in New Wave's long position.Genius Brands vs. Cineverse Corp | Genius Brands vs. LiveOne | Genius Brands vs. Hall of Fame | Genius Brands vs. Netflix |
New Wave vs. Roku Inc | New Wave vs. Seven Arts Entertainment | New Wave vs. Hall of Fame | New Wave vs. Color Star Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |