Correlation Between Genesis Land and ADF
Can any of the company-specific risk be diversified away by investing in both Genesis Land and ADF 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 Genesis Land and ADF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genesis Land Development and ADF Group, you can compare the effects of market volatilities on Genesis Land and ADF 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 Genesis Land with a short position of ADF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesis Land and ADF.
Diversification Opportunities for Genesis Land and ADF
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genesis and ADF is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Genesis Land Development and ADF Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADF Group and Genesis Land 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 Genesis Land Development are associated (or correlated) with ADF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADF Group has no effect on the direction of Genesis Land i.e., Genesis Land and ADF go up and down completely randomly.
Pair Corralation between Genesis Land and ADF
Assuming the 90 days trading horizon Genesis Land Development is expected to generate 0.6 times more return on investment than ADF. However, Genesis Land Development is 1.66 times less risky than ADF. It trades about 0.05 of its potential returns per unit of risk. ADF Group is currently generating about -0.1 per unit of risk. If you would invest 343.00 in Genesis Land Development on September 2, 2024 and sell it today you would earn a total of 42.00 from holding Genesis Land Development or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genesis Land Development vs. ADF Group
Performance |
| Timeline |
| Genesis Land Development |
| ADF Group |
Genesis Land and ADF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genesis Land and ADF
The main advantage of trading using opposite Genesis Land and ADF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genesis Land position performs unexpectedly, ADF 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 ADF will offset losses from the drop in ADF's long position.| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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