Correlation Between Pinnacle Sherman and Genesis Electronics

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

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

Diversification Opportunities for Pinnacle Sherman and Genesis Electronics

0.0

Correlation Coefficient

Pinnacle Sherman  Genesis Electronics

Pay attention - limited upside

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

Pair Corralation between Pinnacle Sherman and Genesis Electronics

If you would invest  1,367  in Pinnacle Sherman Multi Strategy on August 30, 2024 and sell it today you would earn a total of  96.00  from holding Pinnacle Sherman Multi Strategy or generate 7.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Pinnacle Sherman Multi Strateg  vs.  Genesis Electronics Group

Pinnacle Sherman Multi

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pinnacle Sherman Multi Strategy are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical indicators, Pinnacle Sherman may actually be approaching a critical reversion point that can send shares even higher in December 2024.

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 fairly strong technical and fundamental indicators, Genesis Electronics is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Pinnacle Sherman and Genesis Electronics

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

The idea behind Pinnacle Sherman Multi Strategy and Genesis Electronics 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.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.