Correlation Between Mainstreet Equity and Genesis Land
Can any of the company-specific risk be diversified away by investing in both Mainstreet Equity and Genesis Land 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 Mainstreet Equity and Genesis Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstreet Equity Corp and Genesis Land Development, you can compare the effects of market volatilities on Mainstreet Equity and Genesis Land 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 Mainstreet Equity with a short position of Genesis Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstreet Equity and Genesis Land.
Diversification Opportunities for Mainstreet Equity and Genesis Land
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mainstreet and Genesis is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mainstreet Equity Corp and Genesis Land Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Land Development and Mainstreet Equity 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 Mainstreet Equity Corp are associated (or correlated) with Genesis Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Land Development has no effect on the direction of Mainstreet Equity i.e., Mainstreet Equity and Genesis Land go up and down completely randomly.
Pair Corralation between Mainstreet Equity and Genesis Land
Assuming the 90 days trading horizon Mainstreet Equity is expected to generate 2.02 times less return on investment than Genesis Land. But when comparing it to its historical volatility, Mainstreet Equity Corp is 1.8 times less risky than Genesis Land. It trades about 0.11 of its potential returns per unit of risk. Genesis Land Development is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 208.00 in Genesis Land Development on August 24, 2024 and sell it today you would earn a total of 196.00 from holding Genesis Land Development or generate 94.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.38% |
| Values | Daily Returns |
Mainstreet Equity Corp vs. Genesis Land Development
Performance |
| Timeline |
| Mainstreet Equity Corp |
| Genesis Land Development |
Mainstreet Equity and Genesis Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstreet Equity and Genesis Land
The main advantage of trading using opposite Mainstreet Equity and Genesis Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstreet Equity position performs unexpectedly, Genesis Land 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 Genesis Land will offset losses from the drop in Genesis Land's long position.| Mainstreet Equity vs. Morguard | Mainstreet Equity vs. Melcor Developments | Mainstreet Equity vs. Boardwalk Real Estate | Mainstreet Equity vs. Genesis Land Development |
| Genesis Land vs. Melcor Developments | Genesis Land vs. Mainstreet Equity Corp | Genesis Land vs. Madison Pacific Properties | Genesis Land vs. Morguard |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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