Correlation Between GEN Restaurant and Transgene
Can any of the company-specific risk be diversified away by investing in both GEN Restaurant and Transgene 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 Transgene 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 Transgene SA, you can compare the effects of market volatilities on GEN Restaurant and Transgene 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 Transgene. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and Transgene.
Diversification Opportunities for GEN Restaurant and Transgene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GEN and Transgene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and Transgene SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transgene SA 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 Transgene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transgene SA has no effect on the direction of GEN Restaurant i.e., GEN Restaurant and Transgene go up and down completely randomly.
Pair Corralation between GEN Restaurant and Transgene
If you would invest 159.00 in Transgene SA on December 1, 2024 and sell it today you would earn a total of 0.00 from holding Transgene SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEN Restaurant Group, vs. Transgene SA
Performance |
| Timeline |
| GEN Restaurant Group, |
| Transgene SA |
GEN Restaurant and Transgene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEN Restaurant and Transgene
The main advantage of trading using opposite GEN Restaurant and Transgene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant position performs unexpectedly, Transgene 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 Transgene will offset losses from the drop in Transgene's long position.| GEN Restaurant vs. Jacobs Solutions | GEN Restaurant vs. MedX Health Corp | GEN Restaurant vs. Ardelyx | GEN Restaurant vs. Parker Hannifin |
| Transgene vs. BRP Inc | Transgene vs. Postal Realty Trust | Transgene vs. Douglas Emmett | Transgene vs. PACCAR Inc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |