Correlation Between Genius Sports and Groupon
Can any of the company-specific risk be diversified away by investing in both Genius Sports and Groupon 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 Genius Sports and Groupon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genius Sports and Groupon, you can compare the effects of market volatilities on Genius Sports and Groupon 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 Genius Sports with a short position of Groupon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Sports and Groupon.
Diversification Opportunities for Genius Sports and Groupon
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genius and Groupon is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Genius Sports and Groupon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupon and Genius Sports 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 Genius Sports are associated (or correlated) with Groupon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupon has no effect on the direction of Genius Sports i.e., Genius Sports and Groupon go up and down completely randomly.
Pair Corralation between Genius Sports and Groupon
Given the investment horizon of 90 days Genius Sports is expected to generate 0.66 times more return on investment than Groupon. However, Genius Sports is 1.51 times less risky than Groupon. It trades about 0.33 of its potential returns per unit of risk. Groupon is currently generating about -0.06 per unit of risk. If you would invest 717.00 in Genius Sports on August 31, 2024 and sell it today you would earn a total of 260.00 from holding Genius Sports or generate 36.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genius Sports vs. Groupon
Performance |
| Timeline |
| Genius Sports |
| Groupon |
Genius Sports and Groupon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genius Sports and Groupon
The main advantage of trading using opposite Genius Sports and Groupon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Sports position performs unexpectedly, Groupon 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 Groupon will offset losses from the drop in Groupon's long position.| Genius Sports vs. MediaAlpha | Genius Sports vs. Comscore | Genius Sports vs. Cheetah Mobile | Genius Sports vs. Onfolio Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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