Correlation Between GEN Restaurant and Oasis Hotel
Can any of the company-specific risk be diversified away by investing in both GEN Restaurant and Oasis Hotel 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 Oasis Hotel 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 Oasis Hotel Resort, you can compare the effects of market volatilities on GEN Restaurant and Oasis Hotel 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 Oasis Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and Oasis Hotel.
Diversification Opportunities for GEN Restaurant and Oasis Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GEN and Oasis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and Oasis Hotel Resort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasis Hotel Resort 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 Oasis Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasis Hotel Resort has no effect on the direction of GEN Restaurant i.e., GEN Restaurant and Oasis Hotel go up and down completely randomly.
Pair Corralation between GEN Restaurant and Oasis Hotel
Given the investment horizon of 90 days GEN Restaurant Group, is expected to generate 14.71 times more return on investment than Oasis Hotel. However, GEN Restaurant is 14.71 times more volatile than Oasis Hotel Resort. It trades about 0.05 of its potential returns per unit of risk. Oasis Hotel Resort is currently generating about -0.04 per unit of risk. If you would invest 0.00 in GEN Restaurant Group, on August 30, 2024 and sell it today you would earn a total of 822.00 from holding GEN Restaurant Group, or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 72.73% |
| Values | Daily Returns |
GEN Restaurant Group, vs. Oasis Hotel Resort
Performance |
| Timeline |
| GEN Restaurant Group, |
| Oasis Hotel Resort |
GEN Restaurant and Oasis Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEN Restaurant and Oasis Hotel
The main advantage of trading using opposite GEN Restaurant and Oasis Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant position performs unexpectedly, Oasis Hotel 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 Oasis Hotel will offset losses from the drop in Oasis Hotel's long position.| GEN Restaurant vs. Jack In The | GEN Restaurant vs. Potbelly Co | GEN Restaurant vs. Rave Restaurant Group |
| Oasis Hotel vs. Apple Inc | Oasis Hotel vs. Microsoft | Oasis Hotel vs. Alphabet Inc Class C | Oasis Hotel vs. Meta Platforms |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |