Correlation Between Golden Sun and Genius

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

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

Diversification Opportunities for Golden Sun and Genius

-0.49

Correlation Coefficient

Golden Sun  Genius

Very good diversification

The 3 months correlation between Golden and Genius is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Golden Sun Education and Genius Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Group and Golden Sun 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 Golden Sun Education are associated (or correlated) with Genius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genius Group has no effect on the direction of Golden Sun i.e., Golden Sun and Genius go up and down completely randomly.

Pair Corralation between Golden Sun and Genius

Given the investment horizon of 90 days Golden Sun Education is expected to generate 0.54 times more return on investment than Genius. However, Golden Sun Education is 1.85 times less risky than Genius. It trades about 0.1 of its potential returns per unit of risk. Genius Group is currently generating about -0.12 per unit of risk. If you would invest  242.00  in Golden Sun Education on December 28, 2024 and sell it today you would earn a total of  62.00  from holding Golden Sun Education or generate 25.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Golden Sun Education  vs.  Genius Group

Golden Sun Education

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Sun Education are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Golden Sun displayed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Golden Sun and Genius

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

The idea behind Golden Sun Education and Genius Group 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.