Correlation Between Gen Digital and Mogo
Can any of the company-specific risk be diversified away by investing in both Gen Digital and Mogo 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 Gen Digital and Mogo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gen Digital and Mogo Inc, you can compare the effects of market volatilities on Gen Digital and Mogo 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 Gen Digital with a short position of Mogo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gen Digital and Mogo.
Diversification Opportunities for Gen Digital and Mogo
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gen and Mogo is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gen Digital and Mogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogo Inc and Gen Digital 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 Gen Digital are associated (or correlated) with Mogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mogo Inc has no effect on the direction of Gen Digital i.e., Gen Digital and Mogo go up and down completely randomly.
Pair Corralation between Gen Digital and Mogo
Considering the 90-day investment horizon Gen Digital is expected to generate 0.28 times more return on investment than Mogo. However, Gen Digital is 3.61 times less risky than Mogo. It trades about 0.14 of its potential returns per unit of risk. Mogo Inc is currently generating about -0.02 per unit of risk. If you would invest 2,738 in Gen Digital on November 1, 2024 and sell it today you would earn a total of 64.50 from holding Gen Digital or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gen Digital vs. Mogo Inc
Performance |
| Timeline |
| Gen Digital |
| Mogo Inc |
Gen Digital and Mogo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gen Digital and Mogo
The main advantage of trading using opposite Gen Digital and Mogo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gen Digital position performs unexpectedly, Mogo 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 Mogo will offset losses from the drop in Mogo's long position.| Gen Digital vs. Wex Inc | Gen Digital vs. CSG Systems International | Gen Digital vs. VeriSign | Gen Digital vs. Global Blue Group |
| Mogo vs. Katapult Holdings Equity | Mogo vs. International Money Express | Mogo vs. Bakkt Holdings | Mogo vs. Kaltura |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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