Correlation Between GEN Restaurant and Ming Shing

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

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

Diversification Opportunities for GEN Restaurant and Ming Shing

-0.21

Correlation Coefficient

GEN Restaurant  Ming Shing

Very good diversification

The 3 months correlation between GEN and Ming is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and Ming Shing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Shing Group and GEN Restaurant 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 GEN Restaurant Group, are associated (or correlated) with Ming Shing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Shing Group has no effect on the direction of GEN Restaurant i.e., GEN Restaurant and Ming Shing go up and down completely randomly.

Pair Corralation between GEN Restaurant and Ming Shing

Given the investment horizon of 90 days GEN Restaurant Group, is expected to generate 0.41 times more return on investment than Ming Shing. However, GEN Restaurant Group, is 2.43 times less risky than Ming Shing. It trades about 0.0 of its potential returns per unit of risk. Ming Shing Group is currently generating about -0.11 per unit of risk. If you would invest  792.00  in GEN Restaurant Group, on September 22, 2024 and sell it today you would lose (39.00) from holding GEN Restaurant Group, or give up 4.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	31.25%
Values	Daily Returns

GEN Restaurant Group,  vs.  Ming Shing Group

GEN Restaurant Group,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GEN Restaurant Group, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, GEN Restaurant is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Ming Shing Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ming Shing Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with GEN Restaurant and Ming Shing

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

The idea behind GEN Restaurant Group, and Ming Shing Group 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.