Correlation Between Panasonic Corp and Genuit Group
Can any of the company-specific risk be diversified away by investing in both Panasonic Corp and Genuit Group 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 Panasonic Corp and Genuit Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panasonic Corp and Genuit Group plc, you can compare the effects of market volatilities on Panasonic Corp and Genuit Group 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 Panasonic Corp with a short position of Genuit Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panasonic Corp and Genuit Group.
Diversification Opportunities for Panasonic Corp and Genuit Group
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Panasonic and Genuit is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Panasonic Corp and Genuit Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genuit Group plc and Panasonic Corp 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 Panasonic Corp are associated (or correlated) with Genuit Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genuit Group plc has no effect on the direction of Panasonic Corp i.e., Panasonic Corp and Genuit Group go up and down completely randomly.
Pair Corralation between Panasonic Corp and Genuit Group
Assuming the 90 days trading horizon Panasonic Corp is expected to generate 1.45 times more return on investment than Genuit Group. However, Panasonic Corp is 1.45 times more volatile than Genuit Group plc. It trades about 0.04 of its potential returns per unit of risk. Genuit Group plc is currently generating about -0.03 per unit of risk. If you would invest 140,100 in Panasonic Corp on August 31, 2024 and sell it today you would earn a total of 7,800 from holding Panasonic Corp or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 69.77% |
| Values | Daily Returns |
Panasonic Corp vs. Genuit Group plc
Performance |
| Timeline |
| Panasonic Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Genuit Group plc |
Panasonic Corp and Genuit Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panasonic Corp and Genuit Group
The main advantage of trading using opposite Panasonic Corp and Genuit Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panasonic Corp position performs unexpectedly, Genuit Group 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 Genuit Group will offset losses from the drop in Genuit Group's long position.| Panasonic Corp vs. Metals Exploration Plc | Panasonic Corp vs. Southern Copper Corp | Panasonic Corp vs. JD Sports Fashion | Panasonic Corp vs. Darden Restaurants |
| Genuit Group vs. Martin Marietta Materials | Genuit Group vs. Ecofin Global Utilities | Genuit Group vs. Ryanair Holdings plc | Genuit Group vs. Intermediate Capital Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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