Correlation Between GEN Restaurant and ALEXANDRIA
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By analyzing existing cross correlation between GEN Restaurant Group, and ALEXANDRIA REAL ESTATE, you can compare the effects of market volatilities on GEN Restaurant and ALEXANDRIA 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 ALEXANDRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and ALEXANDRIA.
Diversification Opportunities for GEN Restaurant and ALEXANDRIA
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between GEN and ALEXANDRIA is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and ALEXANDRIA REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALEXANDRIA 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 ALEXANDRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALEXANDRIA REAL ESTATE has no effect on the direction of GEN Restaurant i.e., GEN Restaurant and ALEXANDRIA go up and down completely randomly.
Pair Corralation between GEN Restaurant and ALEXANDRIA
Given the investment horizon of 90 days GEN Restaurant Group, is expected to under-perform the ALEXANDRIA. In addition to that, GEN Restaurant is 6.46 times more volatile than ALEXANDRIA REAL ESTATE. It trades about -0.03 of its total potential returns per unit of risk. ALEXANDRIA REAL ESTATE is currently generating about -0.05 per unit of volatility. If you would invest 9,801 in ALEXANDRIA REAL ESTATE on September 2, 2024 and sell it today you would lose (90.00) from holding ALEXANDRIA REAL ESTATE or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
GEN Restaurant Group, vs. ALEXANDRIA REAL ESTATE
Performance |
| Timeline |
| GEN Restaurant Group, |
| ALEXANDRIA REAL ESTATE |
GEN Restaurant and ALEXANDRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEN Restaurant and ALEXANDRIA
The main advantage of trading using opposite GEN Restaurant and ALEXANDRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant position performs unexpectedly, ALEXANDRIA 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 ALEXANDRIA will offset losses from the drop in ALEXANDRIA's long position.The idea behind GEN Restaurant Group, and ALEXANDRIA REAL ESTATE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ALEXANDRIA vs. Acco Brands | ALEXANDRIA vs. Dave Busters Entertainment | ALEXANDRIA vs. RCI Hospitality Holdings | ALEXANDRIA vs. GEN Restaurant Group, |
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.
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