Correlation Between Generationome Properties and Modiv

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

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

Diversification Opportunities for Generationome Properties and Modiv

-0.66

Correlation Coefficient

Generationome Properties  Modiv

Excellent diversification

The 3 months correlation between Generationome and Modiv is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Generationome Properties and Modiv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modiv Inc and Generationome Properties 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 Generationome Properties are associated (or correlated) with Modiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modiv Inc has no effect on the direction of Generationome Properties i.e., Generationome Properties and Modiv go up and down completely randomly.

Pair Corralation between Generationome Properties and Modiv

Given the investment horizon of 90 days Generationome Properties is expected to under-perform the Modiv. In addition to that, Generationome Properties is 1.45 times more volatile than Modiv Inc. It trades about -0.07 of its total potential returns per unit of risk. Modiv Inc is currently generating about 0.04 per unit of volatility. If you would invest  1,231  in Modiv Inc on January 6, 2025 and sell it today you would earn a total of  277.00  from holding Modiv Inc or generate 22.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Generationome Properties  vs.  Modiv Inc

Generationome Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days Generationome Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Modiv Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Modiv Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable fundamental indicators, Modiv is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Generationome Properties and Modiv

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

The idea behind Generationome Properties and Modiv Inc 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.