Correlation Between Genie Music and Hyundai Green

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Can any of the company-specific risk be diversified away by investing in both Genie Music and Hyundai Green 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 Hyundai Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genie Music and Hyundai Green Food, you can compare the effects of market volatilities on Genie Music and Hyundai Green 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 Hyundai Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genie Music and Hyundai Green.

Diversification Opportunities for Genie Music and Hyundai Green

GenieHyundaiDiversified AwayGenieHyundaiDiversified Away100%
0.34
  Correlation Coefficient

Weak diversification

The 3 months correlation between Genie and Hyundai is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Genie Music and Hyundai Green Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Green Food 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 Hyundai Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Green Food has no effect on the direction of Genie Music i.e., Genie Music and Hyundai Green go up and down completely randomly.

Pair Corralation between Genie Music and Hyundai Green

Assuming the 90 days trading horizon Genie Music is expected to generate 1.15 times more return on investment than Hyundai Green. However, Genie Music is 1.15 times more volatile than Hyundai Green Food. It trades about 0.01 of its potential returns per unit of risk. Hyundai Green Food is currently generating about -0.09 per unit of risk. If you would invest  215,000  in Genie Music on November 26, 2024 and sell it today you would lose (500.00) from holding Genie Music or give up 0.23% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Genie Music  vs.  Hyundai Green Food

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-505101520
JavaScript chart by amCharts 3.21.15043610 453340
       Timeline  
Genie Music 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days Genie Music has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Genie Music is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1,8001,9002,0002,1002,2002,3002,400
Hyundai Green Food 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hyundai Green Food are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Hyundai Green is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb13,00013,50014,00014,50015,00015,50016,000

Genie Music and Hyundai Green Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.6-6.44-4.28-2.120.02.084.276.478.6610.85 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15043610 453340
       Returns  

Pair Trading with Genie Music and Hyundai Green

The main advantage of trading using opposite Genie Music and Hyundai Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genie Music position performs unexpectedly, Hyundai Green 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 Hyundai Green will offset losses from the drop in Hyundai Green's long position.
The idea behind Genie Music and Hyundai Green Food 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 CEOs Directory module to screen CEOs from public companies around the world.

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