Correlation Between Dream Finders and GEN Restaurant
Can any of the company-specific risk be diversified away by investing in both Dream Finders 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 Dream Finders and GEN Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dream Finders Homes and GEN Restaurant Group,, you can compare the effects of market volatilities on Dream Finders 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 Dream Finders with a short position of GEN Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dream Finders and GEN Restaurant.
Diversification Opportunities for Dream Finders and GEN Restaurant
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dream and GEN is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dream Finders Homes 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 Dream Finders 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 Dream Finders Homes 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 Dream Finders i.e., Dream Finders and GEN Restaurant go up and down completely randomly.
Pair Corralation between Dream Finders and GEN Restaurant
Considering the 90-day investment horizon Dream Finders is expected to generate 8.41 times less return on investment than GEN Restaurant. But when comparing it to its historical volatility, Dream Finders Homes is 14.76 times less risky than GEN Restaurant. It trades about 0.09 of its potential returns per unit of risk. GEN Restaurant Group, is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in GEN Restaurant Group, on August 30, 2024 and sell it today you would earn a total of 822.00 from holding GEN Restaurant Group, or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.73% |
| Values | Daily Returns |
Dream Finders Homes vs. GEN Restaurant Group,
Performance |
| Timeline |
| Dream Finders Homes |
| GEN Restaurant Group, |
Dream Finders and GEN Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dream Finders and GEN Restaurant
The main advantage of trading using opposite Dream Finders and GEN Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dream Finders 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.| Dream Finders vs. Hovnanian Enterprises | Dream Finders vs. Taylor Morn Home | Dream Finders vs. KB Home | Dream Finders vs. MI Homes |
| GEN Restaurant vs. Jack In The | GEN Restaurant vs. Potbelly Co | GEN Restaurant vs. Rave Restaurant Group |
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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