Correlation Between PropertyGuru and Genius Sports

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

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

Diversification Opportunities for PropertyGuru and Genius Sports

0.0

Correlation Coefficient

PropertyGuru  Genius Sports

Pay attention - limited upside

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

Pair Corralation between PropertyGuru and Genius Sports

If you would invest  862.00  in Genius Sports on December 30, 2024 and sell it today you would earn a total of  153.00  from holding Genius Sports or generate 17.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PropertyGuru Group  vs.  Genius Sports

PropertyGuru Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days PropertyGuru Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PropertyGuru is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Genius Sports

Risk-Adjusted Performance

OK

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

Pair Trading with PropertyGuru and Genius Sports

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

The idea behind PropertyGuru Group and Genius Sports 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.