Correlation Between Energous and Genasys

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

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

Diversification Opportunities for Energous and Genasys

0.58

Correlation Coefficient

Energous  Genasys

Very weak diversification

The 3 months correlation between Energous and Genasys is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Energous and Genasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genasys and Energous 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 Energous are associated (or correlated) with Genasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genasys has no effect on the direction of Energous i.e., Energous and Genasys go up and down completely randomly.

Pair Corralation between Energous and Genasys

Given the investment horizon of 90 days Energous is expected to under-perform the Genasys. But the stock apears to be less risky and, when comparing its historical volatility, Energous is 1.0 times less risky than Genasys. The stock trades about -0.23 of its potential returns per unit of risk. The Genasys is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  346.00  in Genasys on September 21, 2024 and sell it today you would lose (101.00) from holding Genasys or give up 29.19% of portfolio value over 90 days.

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

Energous  vs.  Genasys

Energous

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Energous has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Genasys

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genasys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Energous and Genasys

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

The idea behind Energous and Genasys 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.