Correlation Between FoodNamoo and Genic
Can any of the company-specific risk be diversified away by investing in both FoodNamoo and Genic 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 FoodNamoo and Genic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FoodNamoo and Genic Co, you can compare the effects of market volatilities on FoodNamoo and Genic 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 FoodNamoo with a short position of Genic. Check out your portfolio center. Please also check ongoing floating volatility patterns of FoodNamoo and Genic.
Diversification Opportunities for FoodNamoo and Genic
Very good diversification
The 3 months correlation between FoodNamoo and Genic is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding FoodNamoo and Genic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genic and FoodNamoo 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 FoodNamoo are associated (or correlated) with Genic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genic has no effect on the direction of FoodNamoo i.e., FoodNamoo and Genic go up and down completely randomly.
Pair Corralation between FoodNamoo and Genic
Assuming the 90 days trading horizon FoodNamoo is expected to under-perform the Genic. But the stock apears to be less risky and, when comparing its historical volatility, FoodNamoo is 1.2 times less risky than Genic. The stock trades about -0.04 of its potential returns per unit of risk. The Genic Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 332,500 in Genic Co on October 14, 2024 and sell it today you would earn a total of 2,452,500 from holding Genic Co or generate 737.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.28% |
| Values | Daily Returns |
FoodNamoo vs. Genic Co
Performance |
| Timeline |
| FoodNamoo |
| Genic |
FoodNamoo and Genic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FoodNamoo and Genic
The main advantage of trading using opposite FoodNamoo and Genic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FoodNamoo position performs unexpectedly, Genic 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 Genic will offset losses from the drop in Genic's long position.| FoodNamoo vs. Heungkuk Metaltech CoLtd | FoodNamoo vs. LG Household Healthcare | FoodNamoo vs. Air Busan Co | FoodNamoo vs. Youngsin Metal Industrial |
| Genic vs. JYP Entertainment Corp | Genic vs. Pan Entertainment Co | Genic vs. DC Media Co | Genic vs. Barunson Entertainment Arts |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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