Correlation Between Hims Hers and Genius Sports
Can any of the company-specific risk be diversified away by investing in both Hims Hers and Genius Sports 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 Hims Hers and Genius Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hims Hers Health and Genius Sports, you can compare the effects of market volatilities on Hims Hers and Genius Sports 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 Hims Hers with a short position of Genius Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hims Hers and Genius Sports.
Diversification Opportunities for Hims Hers and Genius Sports
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hims and Genius is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hims Hers Health and Genius Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Sports and Hims Hers 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 Hims Hers Health are associated (or correlated) with Genius Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genius Sports has no effect on the direction of Hims Hers i.e., Hims Hers and Genius Sports go up and down completely randomly.
Pair Corralation between Hims Hers and Genius Sports
Given the investment horizon of 90 days Hims Hers Health is expected to generate 2.36 times more return on investment than Genius Sports. However, Hims Hers is 2.36 times more volatile than Genius Sports. It trades about 0.19 of its potential returns per unit of risk. Genius Sports is currently generating about 0.3 per unit of risk. If you would invest 2,308 in Hims Hers Health on August 27, 2024 and sell it today you would earn a total of 827.00 from holding Hims Hers Health or generate 35.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hims Hers Health vs. Genius Sports
Performance |
| Timeline |
| Hims Hers Health |
| Genius Sports |
Hims Hers and Genius Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hims Hers and Genius Sports
The main advantage of trading using opposite Hims Hers and Genius Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hims Hers position performs unexpectedly, Genius Sports 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 Genius Sports will offset losses from the drop in Genius Sports' long position.| Hims Hers vs. ELF Beauty | Hims Hers vs. Newell Brands | Hims Hers vs. Virgin Group Acquisition | Hims Hers vs. Estee Lauder Companies |
| Genius Sports vs. MediaAlpha | Genius Sports vs. Comscore | Genius Sports vs. Cheetah Mobile | Genius Sports vs. Onfolio Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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