Correlation Between Meta CDR and Genesis Land

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

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

Diversification Opportunities for Meta CDR and Genesis Land

0.76

Correlation Coefficient

Meta CDR  Genesis Land

Poor diversification

The 3 months correlation between Meta and Genesis is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Meta CDR and Genesis Land Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Land Development and Meta CDR 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 Meta CDR are associated (or correlated) with Genesis Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Land Development has no effect on the direction of Meta CDR i.e., Meta CDR and Genesis Land go up and down completely randomly.

Pair Corralation between Meta CDR and Genesis Land

Assuming the 90 days trading horizon Meta CDR is expected to generate 1.16 times more return on investment than Genesis Land. However, Meta CDR is 1.16 times more volatile than Genesis Land Development. It trades about 0.19 of its potential returns per unit of risk. Genesis Land Development is currently generating about 0.09 per unit of risk. If you would invest  3,143  in Meta CDR on May 1, 2025 and sell it today you would earn a total of  690.00  from holding Meta CDR or generate 21.95% return on investment over 90 days.

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

Meta CDR  vs.  Genesis Land Development

Meta CDR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Meta CDR are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Meta CDR displayed solid returns over the last few months and may actually be approaching a breakup point.

Genesis Land Development

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Genesis Land Development are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Genesis Land may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Meta CDR and Genesis Land

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

The idea behind Meta CDR and Genesis Land Development 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.