Correlation Between Xavis and Genie Music
Can any of the company-specific risk be diversified away by investing in both Xavis and Genie Music 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 Xavis and Genie Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xavis Co and Genie Music, you can compare the effects of market volatilities on Xavis and Genie Music 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 Xavis with a short position of Genie Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xavis and Genie Music.
Diversification Opportunities for Xavis and Genie Music
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xavis and Genie is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xavis Co and Genie Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genie Music and Xavis 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 Xavis Co are associated (or correlated) with Genie Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genie Music has no effect on the direction of Xavis i.e., Xavis and Genie Music go up and down completely randomly.
Pair Corralation between Xavis and Genie Music
Assuming the 90 days trading horizon Xavis is expected to generate 1.1 times less return on investment than Genie Music. But when comparing it to its historical volatility, Xavis Co is 1.05 times less risky than Genie Music. It trades about 0.17 of its potential returns per unit of risk. Genie Music is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 197,400 in Genie Music on October 11, 2024 and sell it today you would earn a total of 16,600 from holding Genie Music or generate 8.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xavis Co vs. Genie Music
Performance |
| Timeline |
| Xavis |
| Genie Music |
Xavis and Genie Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xavis and Genie Music
The main advantage of trading using opposite Xavis and Genie Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xavis position performs unexpectedly, Genie Music 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 Genie Music will offset losses from the drop in Genie Music's long position.| Xavis vs. Korea Information Communications | Xavis vs. Korean Reinsurance Co | Xavis vs. Seoul Electronics Telecom | Xavis vs. Kisan Telecom Co |
| Genie Music vs. National Plastic Co | Genie Music vs. Shinil Electronics Co | Genie Music vs. Samji Electronics Co | Genie Music vs. Green Cross Medical |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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