Correlation Between JIADE LIMITED and Genius

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

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

Diversification Opportunities for JIADE LIMITED and Genius

-0.43

Correlation Coefficient

JIADE LIMITED  Genius

Very good diversification

The 3 months correlation between JIADE and Genius is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding JIADE LIMITED Common and Genius Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Group and JIADE LIMITED 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 JIADE LIMITED Common 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 JIADE LIMITED i.e., JIADE LIMITED and Genius go up and down completely randomly.

Pair Corralation between JIADE LIMITED and Genius

Given the investment horizon of 90 days JIADE LIMITED Common is expected to generate 1.76 times more return on investment than Genius. However, JIADE LIMITED is 1.76 times more volatile than Genius Group. It trades about 0.09 of its potential returns per unit of risk. Genius Group is currently generating about 0.04 per unit of risk. If you would invest  51.00  in JIADE LIMITED Common on September 3, 2024 and sell it today you would earn a total of  18.00  from holding JIADE LIMITED Common or generate 35.29% return on investment over 90 days.

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

JIADE LIMITED Common  vs.  Genius Group

JIADE LIMITED Common

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JIADE LIMITED Common are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, JIADE LIMITED reported solid returns over the last few months and may actually be approaching a breakup point.

Genius Group

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Genius Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Genius unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JIADE LIMITED and Genius

The main advantage of trading using opposite JIADE LIMITED and Genius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIADE LIMITED 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 JIADE LIMITED Common 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.