Correlation Between GEN Restaurant and Crombie Real
Can any of the company-specific risk be diversified away by investing in both GEN Restaurant and Crombie Real 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 Crombie Real 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 Crombie Real Estate, you can compare the effects of market volatilities on GEN Restaurant and Crombie Real 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 Crombie Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and Crombie Real.
Diversification Opportunities for GEN Restaurant and Crombie Real
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GEN and Crombie is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and Crombie Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crombie Real Estate 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 Crombie Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crombie Real Estate has no effect on the direction of GEN Restaurant i.e., GEN Restaurant and Crombie Real go up and down completely randomly.
Pair Corralation between GEN Restaurant and Crombie Real
Given the investment horizon of 90 days GEN Restaurant Group, is expected to under-perform the Crombie Real. In addition to that, GEN Restaurant is 2.44 times more volatile than Crombie Real Estate. It trades about -0.03 of its total potential returns per unit of risk. Crombie Real Estate is currently generating about 0.07 per unit of volatility. If you would invest 911.00 in Crombie Real Estate on September 3, 2024 and sell it today you would earn a total of 111.00 from holding Crombie Real Estate or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.2% |
| Values | Daily Returns |
GEN Restaurant Group, vs. Crombie Real Estate
Performance |
| Timeline |
| GEN Restaurant Group, |
| Crombie Real Estate |
GEN Restaurant and Crombie Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEN Restaurant and Crombie Real
The main advantage of trading using opposite GEN Restaurant and Crombie Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant position performs unexpectedly, Crombie Real 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 Crombie Real will offset losses from the drop in Crombie Real's long position.| GEN Restaurant vs. SL Green Realty | GEN Restaurant vs. Haverty Furniture Companies | GEN Restaurant vs. FiscalNote Holdings | GEN Restaurant vs. Cadence Design Systems |
| Crombie Real vs. Modiv Inc | Crombie Real vs. Presidio Property Trust | Crombie Real vs. Medalist Diversified Reit | Crombie Real vs. Gladstone Commercial |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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