Correlation Between Marcus Millichap and Generationome Properties

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

By analyzing existing cross correlation between Marcus Millichap and Generationome Properties, you can compare the effects of market volatilities on Marcus Millichap and Generationome Properties 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 Marcus Millichap with a short position of Generationome Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus Millichap and Generationome Properties.

Diversification Opportunities for Marcus Millichap and Generationome Properties

-0.36

Correlation Coefficient

Marcus Millichap  Generationome Properties

Very good diversification

The 3 months correlation between Marcus and Generationome is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Marcus Millichap and Generationome Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generationome Properties and Marcus Millichap 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 Marcus Millichap are associated (or correlated) with Generationome Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generationome Properties has no effect on the direction of Marcus Millichap i.e., Marcus Millichap and Generationome Properties go up and down completely randomly.

Pair Corralation between Marcus Millichap and Generationome Properties

Considering the 90-day investment horizon Marcus Millichap is expected to generate 1.12 times more return on investment than Generationome Properties. However, Marcus Millichap is 1.12 times more volatile than Generationome Properties. It trades about -0.31 of its potential returns per unit of risk. Generationome Properties is currently generating about -0.41 per unit of risk. If you would invest  4,151  in Marcus Millichap on October 8, 2024 and sell it today you would lose (378.00) from holding Marcus Millichap or give up 9.11% of portfolio value over 90 days.

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

Marcus Millichap  vs.  Generationome Properties

Marcus Millichap

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Marcus Millichap are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong primary indicators, Marcus Millichap is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Generationome Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Generationome Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Marcus Millichap and Generationome Properties

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

The idea behind Marcus Millichap and Generationome Properties 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.