Correlation Between Genius Sports and Hello
Can any of the company-specific risk be diversified away by investing in both Genius Sports and Hello 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 Hello into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genius Sports and Hello Group, you can compare the effects of market volatilities on Genius Sports and Hello 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 Hello. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Sports and Hello.
Diversification Opportunities for Genius Sports and Hello
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genius and Hello is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Genius Sports and Hello Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hello Group 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 Hello. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hello Group has no effect on the direction of Genius Sports i.e., Genius Sports and Hello go up and down completely randomly.
Pair Corralation between Genius Sports and Hello
Given the investment horizon of 90 days Genius Sports is expected to generate 1.07 times more return on investment than Hello. However, Genius Sports is 1.07 times more volatile than Hello Group. It trades about 0.04 of its potential returns per unit of risk. Hello Group is currently generating about -0.01 per unit of risk. If you would invest 735.00 in Genius Sports on September 12, 2024 and sell it today you would earn a total of 198.00 from holding Genius Sports or generate 26.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genius Sports vs. Hello Group
Performance |
| Timeline |
| Genius Sports |
| Hello Group |
Genius Sports and Hello Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genius Sports and Hello
The main advantage of trading using opposite Genius Sports and Hello positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Sports position performs unexpectedly, Hello 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 Hello will offset losses from the drop in Hello's long position.| Genius Sports vs. MediaAlpha | Genius Sports vs. Comscore | Genius Sports vs. Cheetah Mobile | Genius Sports vs. Onfolio Holdings |
| Hello vs. Weibo Corp | Hello vs. Autohome | Hello vs. Tencent Music Entertainment | Hello vs. DouYu International 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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