Correlation Between GS Engineering and Genie Music
Can any of the company-specific risk be diversified away by investing in both GS Engineering and Genie Music 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 GS Engineering and Genie Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Engineering Construction and Genie Music, you can compare the effects of market volatilities on GS Engineering and Genie Music 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 GS Engineering with a short position of Genie Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Engineering and Genie Music.
Diversification Opportunities for GS Engineering and Genie Music
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 006360 and Genie is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding GS Engineering Construction and Genie Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genie Music and GS Engineering 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 GS Engineering Construction are associated (or correlated) with Genie Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genie Music has no effect on the direction of GS Engineering i.e., GS Engineering and Genie Music go up and down completely randomly.
Pair Corralation between GS Engineering and Genie Music
Assuming the 90 days trading horizon GS Engineering Construction is expected to under-perform the Genie Music. But the stock apears to be less risky and, when comparing its historical volatility, GS Engineering Construction is 1.41 times less risky than Genie Music. The stock trades about -0.15 of its potential returns per unit of risk. The Genie Music is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 218,500 in Genie Music on September 28, 2024 and sell it today you would lose (3,500) from holding Genie Music or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GS Engineering Construction vs. Genie Music
Performance |
| Timeline |
| GS Engineering Const |
| Genie Music |
GS Engineering and Genie Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Engineering and Genie Music
The main advantage of trading using opposite GS Engineering and Genie Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Engineering position performs unexpectedly, Genie Music 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 Genie Music will offset losses from the drop in Genie Music's long position.| GS Engineering vs. Kumho Industrial Co | GS Engineering vs. Hanmi Semiconductor Co | GS Engineering vs. PJ Metal Co | GS Engineering vs. Mirai Semiconductors Co |
| Genie Music vs. Hanshin Construction Co | Genie Music vs. GS Engineering Construction | Genie Music vs. Duksan Hi Metal | Genie Music vs. MetaLabs Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |