Correlation Between GEN Restaurant and Cadeler AS
Can any of the company-specific risk be diversified away by investing in both GEN Restaurant and Cadeler AS 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 Restaurant and Cadeler AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEN Restaurant Group, and Cadeler AS, you can compare the effects of market volatilities on GEN Restaurant and Cadeler AS 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 Restaurant with a short position of Cadeler AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and Cadeler AS.
Diversification Opportunities for GEN Restaurant and Cadeler AS
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between GEN and Cadeler is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and Cadeler AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadeler AS and GEN Restaurant 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 Restaurant Group, are associated (or correlated) with Cadeler AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadeler AS has no effect on the direction of GEN Restaurant i.e., GEN Restaurant and Cadeler AS go up and down completely randomly.
Pair Corralation between GEN Restaurant and Cadeler AS
Given the investment horizon of 90 days GEN Restaurant Group, is expected to generate 25.43 times more return on investment than Cadeler AS. However, GEN Restaurant is 25.43 times more volatile than Cadeler AS. It trades about 0.05 of its potential returns per unit of risk. Cadeler AS is currently generating about 0.07 per unit of risk. If you would invest 0.00 in GEN Restaurant Group, on August 27, 2024 and sell it today you would earn a total of 777.00 from holding GEN Restaurant Group, or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.8% |
| Values | Daily Returns |
GEN Restaurant Group, vs. Cadeler AS
Performance |
| Timeline |
| GEN Restaurant Group, |
| Cadeler AS |
GEN Restaurant and Cadeler AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEN Restaurant and Cadeler AS
The main advantage of trading using opposite GEN Restaurant and Cadeler AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant position performs unexpectedly, Cadeler AS 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 Cadeler AS will offset losses from the drop in Cadeler AS's long position.| GEN Restaurant vs. Presidio Property Trust | GEN Restaurant vs. EvoAir Holdings | GEN Restaurant vs. AerSale Corp | GEN Restaurant vs. MGIC Investment Corp |
| Cadeler AS vs. Kenon Holdings | Cadeler AS vs. GameStop Corp | Cadeler AS vs. Concorde Gaming | Cadeler AS vs. NRG Energy |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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