Correlation Between Genesis Electronics and Blueberries Medical

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

By analyzing existing cross correlation between Genesis Electronics Group and Blueberries Medical Corp, you can compare the effects of market volatilities on Genesis Electronics and Blueberries Medical 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 Genesis Electronics with a short position of Blueberries Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesis Electronics and Blueberries Medical.

Diversification Opportunities for Genesis Electronics and Blueberries Medical

0.0

Correlation Coefficient

Genesis Electronics  Blueberries Medical

Pay attention - limited upside

The 3 months correlation between Genesis and Blueberries is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genesis Electronics Group and Blueberries Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blueberries Medical Corp and Genesis Electronics 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 Genesis Electronics Group are associated (or correlated) with Blueberries Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blueberries Medical Corp has no effect on the direction of Genesis Electronics i.e., Genesis Electronics and Blueberries Medical go up and down completely randomly.

Pair Corralation between Genesis Electronics and Blueberries Medical

Given the investment horizon of 90 days Genesis Electronics Group is expected to under-perform the Blueberries Medical. In addition to that, Genesis Electronics is 1.46 times more volatile than Blueberries Medical Corp. It trades about -0.16 of its total potential returns per unit of risk. Blueberries Medical Corp is currently generating about -0.04 per unit of volatility. If you would invest  1.39  in Blueberries Medical Corp on September 25, 2024 and sell it today you would lose (0.44) from holding Blueberries Medical Corp or give up 31.65% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Genesis Electronics Group  vs.  Blueberries Medical Corp

Genesis Electronics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genesis Electronics Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Blueberries Medical Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blueberries Medical Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Genesis Electronics and Blueberries Medical

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

The idea behind Genesis Electronics Group and Blueberries Medical Corp 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.