Correlation Between GEN Restaurant and ZipLink
Can any of the company-specific risk be diversified away by investing in both GEN Restaurant and ZipLink 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 ZipLink 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 ZipLink, you can compare the effects of market volatilities on GEN Restaurant and ZipLink 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 ZipLink. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and ZipLink.
Diversification Opportunities for GEN Restaurant and ZipLink
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GEN and ZipLink is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and ZipLink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZipLink 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 ZipLink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZipLink has no effect on the direction of GEN Restaurant i.e., GEN Restaurant and ZipLink go up and down completely randomly.
Pair Corralation between GEN Restaurant and ZipLink
If you would invest 0.00 in GEN Restaurant Group, on September 3, 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 Together |
| Strength | Very Weak |
| Accuracy | 11.05% |
| Values | Daily Returns |
GEN Restaurant Group, vs. ZipLink
Performance |
| Timeline |
| GEN Restaurant Group, |
| ZipLink |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GEN Restaurant and ZipLink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEN Restaurant and ZipLink
The main advantage of trading using opposite GEN Restaurant and ZipLink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant position performs unexpectedly, ZipLink 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 ZipLink will offset losses from the drop in ZipLink's long position.| GEN Restaurant vs. SL Green Realty | GEN Restaurant vs. Haverty Furniture Companies | GEN Restaurant vs. FiscalNote Holdings | GEN Restaurant vs. Cadence Design Systems |
| ZipLink vs. Franklin Credit Management | ZipLink vs. Jacobs Solutions | ZipLink vs. Ameriprise Financial | ZipLink vs. Griffon |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |