Correlation Between Genie Music and Digital Multimedia
Can any of the company-specific risk be diversified away by investing in both Genie Music and Digital Multimedia 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 Genie Music and Digital Multimedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genie Music and Digital Multimedia Technology, you can compare the effects of market volatilities on Genie Music and Digital Multimedia 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 Genie Music with a short position of Digital Multimedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genie Music and Digital Multimedia.
Diversification Opportunities for Genie Music and Digital Multimedia
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Genie and Digital is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Genie Music and Digital Multimedia Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Multimedia and Genie Music 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 Genie Music are associated (or correlated) with Digital Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Multimedia has no effect on the direction of Genie Music i.e., Genie Music and Digital Multimedia go up and down completely randomly.
Pair Corralation between Genie Music and Digital Multimedia
Assuming the 90 days trading horizon Genie Music is expected to under-perform the Digital Multimedia. But the stock apears to be less risky and, when comparing its historical volatility, Genie Music is 1.14 times less risky than Digital Multimedia. The stock trades about -0.28 of its potential returns per unit of risk. The Digital Multimedia Technology is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 182,000 in Digital Multimedia Technology on August 27, 2024 and sell it today you would lose (20,200) from holding Digital Multimedia Technology or give up 11.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genie Music vs. Digital Multimedia Technology
Performance |
| Timeline |
| Genie Music |
| Digital Multimedia |
Genie Music and Digital Multimedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genie Music and Digital Multimedia
The main advantage of trading using opposite Genie Music and Digital Multimedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genie Music position performs unexpectedly, Digital Multimedia 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 Digital Multimedia will offset losses from the drop in Digital Multimedia's long position.| Genie Music vs. AfreecaTV Co | Genie Music vs. SS TECH | Genie Music vs. Busan Industrial Co | Genie Music vs. Busan Ind |
| Digital Multimedia vs. TJ media Co | Digital Multimedia vs. Kaonmedia Co | Digital Multimedia vs. SM Entertainment Co | Digital Multimedia vs. Tamul Multimedia 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |