Correlation Between Trump Media and Genius Sports
Can any of the company-specific risk be diversified away by investing in both Trump Media and Genius Sports 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 Trump Media and Genius Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trump Media Technology and Genius Sports, you can compare the effects of market volatilities on Trump Media and Genius Sports 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 Trump Media with a short position of Genius Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trump Media and Genius Sports.
Diversification Opportunities for Trump Media and Genius Sports
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trump and Genius is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Trump Media Technology and Genius Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Sports and Trump Media 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 Trump Media Technology are associated (or correlated) with Genius Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genius Sports has no effect on the direction of Trump Media i.e., Trump Media and Genius Sports go up and down completely randomly.
Pair Corralation between Trump Media and Genius Sports
Considering the 90-day investment horizon Trump Media Technology is expected to under-perform the Genius Sports. But the stock apears to be less risky and, when comparing its historical volatility, Trump Media Technology is 1.16 times less risky than Genius Sports. The stock trades about -0.13 of its potential returns per unit of risk. The Genius Sports is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 938.00 in Genius Sports on June 10, 2025 and sell it today you would earn a total of 406.00 from holding Genius Sports or generate 43.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Trump Media Technology vs. Genius Sports
Performance |
| Timeline |
| Trump Media Technology |
| Genius Sports |
Trump Media and Genius Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trump Media and Genius Sports
The main advantage of trading using opposite Trump Media and Genius Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trump Media position performs unexpectedly, Genius Sports 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 Genius Sports will offset losses from the drop in Genius Sports' long position.| Trump Media vs. Kanzhun Ltd ADR | Trump Media vs. Eventbrite Class A | Trump Media vs. Scienjoy Holding Corp | Trump Media vs. Weibo Corp |
| Genius Sports vs. Vivid Seats | Genius Sports vs. MediaAlpha | Genius Sports vs. Getty Images Holdings | Genius Sports vs. Shutterstock |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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