Correlation Between Genesco and Appian Corp
Can any of the company-specific risk be diversified away by investing in both Genesco and Appian Corp 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 Genesco and Appian Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genesco and Appian Corp, you can compare the effects of market volatilities on Genesco and Appian Corp 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 Genesco with a short position of Appian Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesco and Appian Corp.
Diversification Opportunities for Genesco and Appian Corp
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Genesco and Appian is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Genesco and Appian Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appian Corp and Genesco 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 Genesco are associated (or correlated) with Appian Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appian Corp has no effect on the direction of Genesco i.e., Genesco and Appian Corp go up and down completely randomly.
Pair Corralation between Genesco and Appian Corp
Considering the 90-day investment horizon Genesco is expected to generate 1.51 times more return on investment than Appian Corp. However, Genesco is 1.51 times more volatile than Appian Corp. It trades about 0.36 of its potential returns per unit of risk. Appian Corp is currently generating about -0.08 per unit of risk. If you would invest 3,061 in Genesco on September 12, 2024 and sell it today you would earn a total of 1,185 from holding Genesco or generate 38.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genesco vs. Appian Corp
Performance |
| Timeline |
| Genesco |
| Appian Corp |
Genesco and Appian Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genesco and Appian Corp
The main advantage of trading using opposite Genesco and Appian Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genesco position performs unexpectedly, Appian Corp 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 Appian Corp will offset losses from the drop in Appian Corp's long position.| Genesco vs. Foot Locker | Genesco vs. Lands End | Genesco vs. Duluth Holdings | Genesco vs. Destination XL 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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