Correlation Between One Group and GEN Restaurant
Can any of the company-specific risk be diversified away by investing in both One Group 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 One Group and GEN Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Group Hospitality and GEN Restaurant Group,, you can compare the effects of market volatilities on One Group 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 One Group with a short position of GEN Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Group and GEN Restaurant.
Diversification Opportunities for One Group and GEN Restaurant
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between One and GEN is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding One Group Hospitality 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 One Group 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 One Group Hospitality 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 One Group i.e., One Group and GEN Restaurant go up and down completely randomly.
Pair Corralation between One Group and GEN Restaurant
Given the investment horizon of 90 days One Group Hospitality is expected to generate 1.01 times more return on investment than GEN Restaurant. However, One Group is 1.01 times more volatile than GEN Restaurant Group,. It trades about -0.01 of its potential returns per unit of risk. GEN Restaurant Group, is currently generating about -0.06 per unit of risk. If you would invest 352.00 in One Group Hospitality on August 29, 2024 and sell it today you would lose (13.00) from holding One Group Hospitality or give up 3.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Group Hospitality vs. GEN Restaurant Group,
Performance |
| Timeline |
| One Group Hospitality |
| GEN Restaurant Group, |
One Group and GEN Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Group and GEN Restaurant
The main advantage of trading using opposite One Group and GEN Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Group 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.| One Group vs. Jack In The | One Group vs. Potbelly Co | One Group vs. BJs Restaurants | One Group vs. Rave Restaurant Group |
| GEN Restaurant vs. Jack In The | GEN Restaurant vs. Potbelly Co | GEN Restaurant vs. BJs Restaurants | GEN Restaurant vs. One Group Hospitality |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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