Correlation Between Graf Global and Genesis Growth

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

By analyzing existing cross correlation between Graf Global Corp and Genesis Growth Tech, you can compare the effects of market volatilities on Graf Global and Genesis Growth 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 Graf Global with a short position of Genesis Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graf Global and Genesis Growth.

Diversification Opportunities for Graf Global and Genesis Growth

0.0

Correlation Coefficient

Graf Global  Genesis Growth

Pay attention - limited upside

The 3 months correlation between Graf and Genesis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Graf Global Corp and Genesis Growth Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Growth Tech and Graf Global 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 Graf Global Corp are associated (or correlated) with Genesis Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Growth Tech has no effect on the direction of Graf Global i.e., Graf Global and Genesis Growth go up and down completely randomly.

Pair Corralation between Graf Global and Genesis Growth

If you would invest  999.00  in Graf Global Corp on October 7, 2024 and sell it today you would earn a total of  9.00  from holding Graf Global Corp or generate 0.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.02%
Values	Daily Returns

Graf Global Corp  vs.  Genesis Growth Tech

Graf Global Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Graf Global Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Graf Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Genesis Growth Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genesis Growth Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Genesis Growth is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Graf Global and Genesis Growth

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

The idea behind Graf Global Corp and Genesis Growth Tech 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.