Correlation Between Genuine Parts and Miniso Group
Can any of the company-specific risk be diversified away by investing in both Genuine Parts and Miniso Group 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 Genuine Parts and Miniso Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genuine Parts Co and Miniso Group Holding, you can compare the effects of market volatilities on Genuine Parts and Miniso Group 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 Genuine Parts with a short position of Miniso Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genuine Parts and Miniso Group.
Diversification Opportunities for Genuine Parts and Miniso Group
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genuine and Miniso is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Genuine Parts Co and Miniso Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miniso Group Holding and Genuine Parts 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 Genuine Parts Co are associated (or correlated) with Miniso Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miniso Group Holding has no effect on the direction of Genuine Parts i.e., Genuine Parts and Miniso Group go up and down completely randomly.
Pair Corralation between Genuine Parts and Miniso Group
Considering the 90-day investment horizon Genuine Parts Co is expected to generate 0.48 times more return on investment than Miniso Group. However, Genuine Parts Co is 2.09 times less risky than Miniso Group. It trades about 0.22 of its potential returns per unit of risk. Miniso Group Holding is currently generating about -0.03 per unit of risk. If you would invest 11,728 in Genuine Parts Co on August 30, 2024 and sell it today you would earn a total of 1,062 from holding Genuine Parts Co or generate 9.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genuine Parts Co vs. Miniso Group Holding
Performance |
| Timeline |
| Genuine Parts |
| Miniso Group Holding |
Genuine Parts and Miniso Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genuine Parts and Miniso Group
The main advantage of trading using opposite Genuine Parts and Miniso Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genuine Parts position performs unexpectedly, Miniso Group 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 Miniso Group will offset losses from the drop in Miniso Group's long position.| Genuine Parts vs. Dover | Genuine Parts vs. Cincinnati Financial | Genuine Parts vs. Leggett Platt Incorporated | Genuine Parts vs. WW Grainger |
| Miniso Group vs. Leslies | Miniso Group vs. Sally Beauty Holdings | Miniso Group vs. ODP Corp | Miniso Group vs. 1 800 FLOWERSCOM |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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