Correlation Between Generation Income and Transcontinental

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

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

Diversification Opportunities for Generation Income and Transcontinental

-0.64

Correlation Coefficient

Generation Income  Transcontinental

Excellent diversification

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

Pair Corralation between Generation Income and Transcontinental

Assuming the 90 days horizon Generation Income Properties is expected to under-perform the Transcontinental. In addition to that, Generation Income is 8.99 times more volatile than Transcontinental Realty Investors. It trades about 0.0 of its total potential returns per unit of risk. Transcontinental Realty Investors is currently generating about 0.15 per unit of volatility. If you would invest  3,443  in Transcontinental Realty Investors on May 15, 2025 and sell it today you would earn a total of  979.00  from holding Transcontinental Realty Investors or generate 28.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	48.39%
Values	Daily Returns

Generation Income Properties  vs.  Transcontinental Realty Invest

Generation Income

Risk-Adjusted Performance

Soft

Over the last 90 days Generation Income Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Transcontinental Realty

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Transcontinental Realty Investors are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent fundamental indicators, Transcontinental demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Generation Income and Transcontinental

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

The idea behind Generation Income Properties and Transcontinental Realty Investors 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.