Correlation Between Genesco and Kering SA

Can any of the company-specific risk be diversified away by investing in both Genesco and Kering SA 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 Genesco and Kering SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Genesco and Kering SA, you can compare the effects of market volatilities on Genesco and Kering SA 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 Genesco with a short position of Kering SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesco and Kering SA.

Diversification Opportunities for Genesco and Kering SA

0.64

Correlation Coefficient

Genesco  Kering SA

Poor diversification

The 3 months correlation between Genesco and Kering is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Genesco and Kering SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kering SA and Genesco 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 Genesco are associated (or correlated) with Kering SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kering SA has no effect on the direction of Genesco i.e., Genesco and Kering SA go up and down completely randomly.

Pair Corralation between Genesco and Kering SA

Considering the 90-day investment horizon Genesco is expected to generate 1.19 times less return on investment than Kering SA. In addition to that, Genesco is 1.23 times more volatile than Kering SA. It trades about 0.09 of its total potential returns per unit of risk. Kering SA is currently generating about 0.13 per unit of volatility. If you would invest  1,989  in Kering SA on May 6, 2025 and sell it today you would earn a total of  510.00  from holding Kering SA or generate 25.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Genesco  vs.  Kering SA

Genesco

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Genesco are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting fundamental indicators, Genesco displayed solid returns over the last few months and may actually be approaching a breakup point.

Kering SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kering SA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Kering SA showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genesco and Kering SA

The main advantage of trading using opposite Genesco and Kering SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genesco position performs unexpectedly, Kering SA 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 Kering SA will offset losses from the drop in Kering SA's long position.

The idea behind Genesco and Kering SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.