Correlation Between GEN Restaurant and ConnectM Technology
Can any of the company-specific risk be diversified away by investing in both GEN Restaurant and ConnectM Technology 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 ConnectM Technology 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 ConnectM Technology Solutions,, you can compare the effects of market volatilities on GEN Restaurant and ConnectM Technology 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 ConnectM Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and ConnectM Technology.
Diversification Opportunities for GEN Restaurant and ConnectM Technology
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GEN and ConnectM is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and ConnectM Technology Solutions, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConnectM Technology 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 ConnectM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConnectM Technology has no effect on the direction of GEN Restaurant i.e., GEN Restaurant and ConnectM Technology go up and down completely randomly.
Pair Corralation between GEN Restaurant and ConnectM Technology
Given the investment horizon of 90 days GEN Restaurant Group, is expected to under-perform the ConnectM Technology. But the stock apears to be less risky and, when comparing its historical volatility, GEN Restaurant Group, is 4.02 times less risky than ConnectM Technology. The stock trades about -0.27 of its potential returns per unit of risk. The ConnectM Technology Solutions, is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 103.00 in ConnectM Technology Solutions, on October 25, 2024 and sell it today you would earn a total of 15.00 from holding ConnectM Technology Solutions, or generate 14.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEN Restaurant Group, vs. ConnectM Technology Solutions,
Performance |
| Timeline |
| GEN Restaurant Group, |
| ConnectM Technology |
GEN Restaurant and ConnectM Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEN Restaurant and ConnectM Technology
The main advantage of trading using opposite GEN Restaurant and ConnectM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant position performs unexpectedly, ConnectM Technology 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 ConnectM Technology will offset losses from the drop in ConnectM Technology's long position.| GEN Restaurant vs. Vindicator Silver Lead Mining | GEN Restaurant vs. Zijin Mining Group | GEN Restaurant vs. Grounded People Apparel | GEN Restaurant vs. Marimaca Copper Corp |
| ConnectM Technology vs. Molson Coors Brewing | ConnectM Technology vs. Ispire Technology Common | ConnectM Technology vs. Nippon Steel Corp | ConnectM Technology vs. Century Aluminum |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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