Correlation Between GenoFocus and Foodnamoo
Can any of the company-specific risk be diversified away by investing in both GenoFocus and Foodnamoo 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 GenoFocus and Foodnamoo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GenoFocus and Foodnamoo, you can compare the effects of market volatilities on GenoFocus and Foodnamoo 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 GenoFocus with a short position of Foodnamoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of GenoFocus and Foodnamoo.
Diversification Opportunities for GenoFocus and Foodnamoo
Very good diversification
The 3 months correlation between GenoFocus and Foodnamoo is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding GenoFocus and Foodnamoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foodnamoo and GenoFocus 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 GenoFocus are associated (or correlated) with Foodnamoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foodnamoo has no effect on the direction of GenoFocus i.e., GenoFocus and Foodnamoo go up and down completely randomly.
Pair Corralation between GenoFocus and Foodnamoo
Assuming the 90 days trading horizon GenoFocus is expected to generate 1.26 times less return on investment than Foodnamoo. In addition to that, GenoFocus is 1.37 times more volatile than Foodnamoo. It trades about 0.05 of its total potential returns per unit of risk. Foodnamoo is currently generating about 0.09 per unit of volatility. If you would invest 304,000 in Foodnamoo on September 15, 2024 and sell it today you would earn a total of 16,500 from holding Foodnamoo or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GenoFocus vs. Foodnamoo
Performance |
| Timeline |
| GenoFocus |
| Foodnamoo |
GenoFocus and Foodnamoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GenoFocus and Foodnamoo
The main advantage of trading using opposite GenoFocus and Foodnamoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GenoFocus position performs unexpectedly, Foodnamoo 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 Foodnamoo will offset losses from the drop in Foodnamoo's long position.| GenoFocus vs. Foodnamoo | GenoFocus vs. Korea Investment Holdings | GenoFocus vs. Sempio Foods Co | GenoFocus vs. E Investment Development |
| Foodnamoo vs. Solution Advanced Technology | Foodnamoo vs. Busan Industrial Co | Foodnamoo vs. Busan Ind | Foodnamoo vs. Sam Chun Dang |
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.
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