Correlation Between Genie Music and RF Materials
Can any of the company-specific risk be diversified away by investing in both Genie Music and RF Materials 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 RF Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genie Music and RF Materials Co, you can compare the effects of market volatilities on Genie Music and RF Materials 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 RF Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genie Music and RF Materials.
Diversification Opportunities for Genie Music and RF Materials
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genie and 327260 is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Genie Music and RF Materials Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RF Materials 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 RF Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RF Materials has no effect on the direction of Genie Music i.e., Genie Music and RF Materials go up and down completely randomly.
Pair Corralation between Genie Music and RF Materials
Assuming the 90 days trading horizon Genie Music is expected to generate 0.94 times more return on investment than RF Materials. However, Genie Music is 1.06 times less risky than RF Materials. It trades about -0.04 of its potential returns per unit of risk. RF Materials Co is currently generating about -0.05 per unit of risk. If you would invest 404,500 in Genie Music on November 1, 2024 and sell it today you would lose (201,000) from holding Genie Music or give up 49.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genie Music vs. RF Materials Co
Performance |
| Timeline |
| Genie Music |
| RF Materials |
Genie Music and RF Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genie Music and RF Materials
The main advantage of trading using opposite Genie Music and RF Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genie Music position performs unexpectedly, RF Materials 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 RF Materials will offset losses from the drop in RF Materials' long position.| Genie Music vs. Daou Data Corp | Genie Music vs. INFINITT Healthcare Co | Genie Music vs. ITM Semiconductor Co | Genie Music vs. Daishin Information Communications |
| RF Materials vs. Duksan Hi Metal | RF Materials vs. Dongbang Transport Logistics | RF Materials vs. Samji Electronics Co | RF Materials vs. Daeduck Electronics 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |