Correlation Between Presidio Property and GEN Restaurant
Can any of the company-specific risk be diversified away by investing in both Presidio Property 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 Presidio Property and GEN Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Presidio Property Trust and GEN Restaurant Group,, you can compare the effects of market volatilities on Presidio Property 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 Presidio Property with a short position of GEN Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Presidio Property and GEN Restaurant.
Diversification Opportunities for Presidio Property and GEN Restaurant
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Presidio and GEN is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Presidio Property Trust 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 Presidio Property 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 Presidio Property Trust 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 Presidio Property i.e., Presidio Property and GEN Restaurant go up and down completely randomly.
Pair Corralation between Presidio Property and GEN Restaurant
Given the investment horizon of 90 days Presidio Property Trust is expected to under-perform the GEN Restaurant. In addition to that, Presidio Property is 1.01 times more volatile than GEN Restaurant Group,. It trades about -0.16 of its total potential returns per unit of risk. GEN Restaurant Group, is currently generating about -0.11 per unit of volatility. If you would invest 906.00 in GEN Restaurant Group, on August 27, 2024 and sell it today you would lose (129.00) from holding GEN Restaurant Group, or give up 14.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Presidio Property Trust vs. GEN Restaurant Group,
Performance |
| Timeline |
| Presidio Property Trust |
| GEN Restaurant Group, |
Presidio Property and GEN Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Presidio Property and GEN Restaurant
The main advantage of trading using opposite Presidio Property and GEN Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presidio Property 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.| Presidio Property vs. Investcorp Credit Management | Presidio Property vs. Medalist Diversified Reit | Presidio Property vs. Aquagold International | Presidio Property vs. Morningstar Unconstrained Allocation |
| GEN Restaurant vs. Presidio Property Trust | GEN Restaurant vs. EvoAir Holdings | GEN Restaurant vs. AerSale Corp | GEN Restaurant vs. MGIC Investment Corp |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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