Correlation Between Boardwalk Real and Genesis Land
Can any of the company-specific risk be diversified away by investing in both Boardwalk Real and Genesis Land 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 Boardwalk Real and Genesis Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boardwalk Real Estate and Genesis Land Development, you can compare the effects of market volatilities on Boardwalk Real and Genesis Land 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 Boardwalk Real with a short position of Genesis Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boardwalk Real and Genesis Land.
Diversification Opportunities for Boardwalk Real and Genesis Land
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boardwalk and Genesis is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Boardwalk Real Estate and Genesis Land Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Land Development and Boardwalk Real 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 Boardwalk Real Estate are associated (or correlated) with Genesis Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Land Development has no effect on the direction of Boardwalk Real i.e., Boardwalk Real and Genesis Land go up and down completely randomly.
Pair Corralation between Boardwalk Real and Genesis Land
Assuming the 90 days trading horizon Boardwalk Real is expected to generate 3.82 times less return on investment than Genesis Land. But when comparing it to its historical volatility, Boardwalk Real Estate is 4.25 times less risky than Genesis Land. It trades about 0.07 of its potential returns per unit of risk. Genesis Land Development is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 160.00 in Genesis Land Development on August 27, 2024 and sell it today you would earn a total of 229.00 from holding Genesis Land Development or generate 143.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.56% |
| Values | Daily Returns |
Boardwalk Real Estate vs. Genesis Land Development
Performance |
| Timeline |
| Boardwalk Real Estate |
| Genesis Land Development |
Boardwalk Real and Genesis Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boardwalk Real and Genesis Land
The main advantage of trading using opposite Boardwalk Real and Genesis Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boardwalk Real position performs unexpectedly, Genesis Land 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 Genesis Land will offset losses from the drop in Genesis Land's long position.| Boardwalk Real vs. Canadian Apartment Properties | Boardwalk Real vs. Dream Office Real | Boardwalk Real vs. Artis Real Estate | Boardwalk Real vs. Allied Properties Real |
| Genesis Land vs. Melcor Developments | Genesis Land vs. Mainstreet Equity Corp | Genesis Land vs. Madison Pacific Properties | Genesis Land vs. Morguard |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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