Correlation Between GEN Restaurant and Hudson Pacific
Can any of the company-specific risk be diversified away by investing in both GEN Restaurant and Hudson Pacific 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 Hudson Pacific 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 Hudson Pacific Properties, you can compare the effects of market volatilities on GEN Restaurant and Hudson Pacific 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 Hudson Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and Hudson Pacific.
Diversification Opportunities for GEN Restaurant and Hudson Pacific
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GEN and Hudson is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and Hudson Pacific Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Pacific Properties 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 Hudson Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Pacific Properties has no effect on the direction of GEN Restaurant i.e., GEN Restaurant and Hudson Pacific go up and down completely randomly.
Pair Corralation between GEN Restaurant and Hudson Pacific
Given the investment horizon of 90 days GEN Restaurant Group, is expected to generate 1.01 times more return on investment than Hudson Pacific. However, GEN Restaurant is 1.01 times more volatile than Hudson Pacific Properties. It trades about -0.04 of its potential returns per unit of risk. Hudson Pacific Properties is currently generating about -0.06 per unit of risk. If you would invest 892.00 in GEN Restaurant Group, on August 30, 2024 and sell it today you would lose (70.00) from holding GEN Restaurant Group, or give up 7.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEN Restaurant Group, vs. Hudson Pacific Properties
Performance |
| Timeline |
| GEN Restaurant Group, |
| Hudson Pacific Properties |
GEN Restaurant and Hudson Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEN Restaurant and Hudson Pacific
The main advantage of trading using opposite GEN Restaurant and Hudson Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant position performs unexpectedly, Hudson Pacific 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 Hudson Pacific will offset losses from the drop in Hudson Pacific's long position.| GEN Restaurant vs. Allient | GEN Restaurant vs. NioCorp Developments Ltd | GEN Restaurant vs. Nextplat Corp | GEN Restaurant vs. Asure Software |
| Hudson Pacific vs. Boston Properties | Hudson Pacific vs. Douglas Emmett | Hudson Pacific vs. Kilroy Realty Corp | Hudson Pacific vs. Alexandria Real Estate |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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