Correlation Between Crombie Real and GEN Restaurant
Can any of the company-specific risk be diversified away by investing in both Crombie Real and GEN Restaurant 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 Crombie Real and GEN Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crombie Real Estate and GEN Restaurant Group,, you can compare the effects of market volatilities on Crombie Real and GEN Restaurant 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 Crombie Real with a short position of GEN Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crombie Real and GEN Restaurant.
Diversification Opportunities for Crombie Real and GEN Restaurant
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crombie and GEN is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Crombie Real Estate and GEN Restaurant Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEN Restaurant Group, and Crombie 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 Crombie Real Estate are associated (or correlated) with GEN Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEN Restaurant Group, has no effect on the direction of Crombie Real i.e., Crombie Real and GEN Restaurant go up and down completely randomly.
Pair Corralation between Crombie Real and GEN Restaurant
Assuming the 90 days horizon Crombie Real Estate is expected to under-perform the GEN Restaurant. But the pink sheet apears to be less risky and, when comparing its historical volatility, Crombie Real Estate is 3.8 times less risky than GEN Restaurant. The pink sheet trades about -0.26 of its potential returns per unit of risk. The GEN Restaurant Group, is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 903.00 in GEN Restaurant Group, on September 2, 2024 and sell it today you would lose (55.00) from holding GEN Restaurant Group, or give up 6.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Crombie Real Estate vs. GEN Restaurant Group,
Performance |
| Timeline |
| Crombie Real Estate |
| GEN Restaurant Group, |
Crombie Real and GEN Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crombie Real and GEN Restaurant
The main advantage of trading using opposite Crombie Real and GEN Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crombie Real position performs unexpectedly, GEN Restaurant 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 GEN Restaurant will offset losses from the drop in GEN Restaurant's long position.| Crombie Real vs. Modiv Inc | Crombie Real vs. Presidio Property Trust | Crombie Real vs. Medalist Diversified Reit | Crombie Real vs. Gladstone Commercial |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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