Correlation Between Pekin Life and GEN Restaurant
Can any of the company-specific risk be diversified away by investing in both Pekin Life and GEN Restaurant 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 Pekin Life and GEN Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pekin Life Insurance and GEN Restaurant Group,, you can compare the effects of market volatilities on Pekin Life and GEN Restaurant 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 Pekin Life with a short position of GEN Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and GEN Restaurant.
Diversification Opportunities for Pekin Life and GEN Restaurant
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pekin and GEN is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and GEN Restaurant Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEN Restaurant Group, and Pekin Life 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 Pekin Life Insurance are associated (or correlated) with GEN Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEN Restaurant Group, has no effect on the direction of Pekin Life i.e., Pekin Life and GEN Restaurant go up and down completely randomly.
Pair Corralation between Pekin Life and GEN Restaurant
Given the investment horizon of 90 days Pekin Life Insurance is expected to generate 0.08 times more return on investment than GEN Restaurant. However, Pekin Life Insurance is 12.07 times less risky than GEN Restaurant. It trades about 0.23 of its potential returns per unit of risk. GEN Restaurant Group, is currently generating about -0.07 per unit of risk. If you would invest 1,150 in Pekin Life Insurance on August 26, 2024 and sell it today you would earn a total of 25.00 from holding Pekin Life Insurance or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pekin Life Insurance vs. GEN Restaurant Group,
Performance |
| Timeline |
| Pekin Life Insurance |
| GEN Restaurant Group, |
Pekin Life and GEN Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and GEN Restaurant
The main advantage of trading using opposite Pekin Life and GEN Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, GEN Restaurant 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 GEN Restaurant will offset losses from the drop in GEN Restaurant's long position.| Pekin Life vs. Invesco High Income | Pekin Life vs. Blackrock Muniholdings Ny | Pekin Life vs. MFS Investment Grade | Pekin Life vs. Federated Premier Municipal |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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