Correlation Between GEN Restaurant and Mativ Holdings
Can any of the company-specific risk be diversified away by investing in both GEN Restaurant and Mativ Holdings 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 Mativ Holdings 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 Mativ Holdings, you can compare the effects of market volatilities on GEN Restaurant and Mativ Holdings 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 Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and Mativ Holdings.
Diversification Opportunities for GEN Restaurant and Mativ Holdings
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between GEN and Mativ is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings 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 Mativ Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mativ Holdings has no effect on the direction of GEN Restaurant i.e., GEN Restaurant and Mativ Holdings go up and down completely randomly.
Pair Corralation between GEN Restaurant and Mativ Holdings
Given the investment horizon of 90 days GEN Restaurant Group, is expected to generate 13.74 times more return on investment than Mativ Holdings. However, GEN Restaurant is 13.74 times more volatile than Mativ Holdings. It trades about 0.05 of its potential returns per unit of risk. Mativ Holdings is currently generating about 0.0 per unit of risk. If you would invest 0.00 in GEN Restaurant Group, on September 1, 2024 and sell it today you would earn a total of 848.00 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 | 72.93% |
| Values | Daily Returns |
GEN Restaurant Group, vs. Mativ Holdings
Performance |
| Timeline |
| GEN Restaurant Group, |
| Mativ Holdings |
GEN Restaurant and Mativ Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEN Restaurant and Mativ Holdings
The main advantage of trading using opposite GEN Restaurant and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant position performs unexpectedly, Mativ Holdings 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 Mativ Holdings will offset losses from the drop in Mativ Holdings' long position.| GEN Restaurant vs. Mink Therapeutics | GEN Restaurant vs. Old Republic International | GEN Restaurant vs. Mind Medicine | GEN Restaurant vs. BTB Real Estate |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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