Correlation Between Weibo Corp and Genesis Growth
Can any of the company-specific risk be diversified away by investing in both Weibo Corp and Genesis Growth 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 Weibo Corp and Genesis Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weibo Corp and Genesis Growth Tech, you can compare the effects of market volatilities on Weibo Corp and Genesis Growth 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 Weibo Corp with a short position of Genesis Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and Genesis Growth.
Diversification Opportunities for Weibo Corp and Genesis Growth
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Weibo and Genesis is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and Genesis Growth Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Growth Tech and Weibo Corp 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 Weibo Corp are associated (or correlated) with Genesis Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Growth Tech has no effect on the direction of Weibo Corp i.e., Weibo Corp and Genesis Growth go up and down completely randomly.
Pair Corralation between Weibo Corp and Genesis Growth
If you would invest 819.00 in Weibo Corp on September 14, 2024 and sell it today you would earn a total of 227.00 from holding Weibo Corp or generate 27.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Weibo Corp vs. Genesis Growth Tech
Performance |
| Timeline |
| Weibo Corp |
| Genesis Growth Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Weibo Corp and Genesis Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and Genesis Growth
The main advantage of trading using opposite Weibo Corp and Genesis Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp position performs unexpectedly, Genesis Growth 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 Growth will offset losses from the drop in Genesis Growth's long position.| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
| Genesis Growth vs. Kandi Technologies Group | Genesis Growth vs. Weibo Corp | Genesis Growth vs. NETGEAR | Genesis Growth vs. Emerson Electric |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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