Correlation Between Genesis Electronics and EV Technology
Can any of the company-specific risk be diversified away by investing in both Genesis Electronics and EV Technology 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 EV Technology 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 EV Technology Group, you can compare the effects of market volatilities on Genesis Electronics and EV Technology 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 EV Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesis Electronics and EV Technology.
Diversification Opportunities for Genesis Electronics and EV Technology
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genesis and EVTGF is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Genesis Electronics Group and EV Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EV Technology Group 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 EV Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EV Technology Group has no effect on the direction of Genesis Electronics i.e., Genesis Electronics and EV Technology go up and down completely randomly.
Pair Corralation between Genesis Electronics and EV Technology
Given the investment horizon of 90 days Genesis Electronics Group is expected to under-perform the EV Technology. In addition to that, Genesis Electronics is 1.23 times more volatile than EV Technology Group. It trades about -0.01 of its total potential returns per unit of risk. EV Technology Group is currently generating about 0.04 per unit of volatility. If you would invest 0.45 in EV Technology Group on September 2, 2024 and sell it today you would lose (0.04) from holding EV Technology Group or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genesis Electronics Group vs. EV Technology Group
Performance |
| Timeline |
| Genesis Electronics |
| EV Technology Group |
Genesis Electronics and EV Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genesis Electronics and EV Technology
The main advantage of trading using opposite Genesis Electronics and EV Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genesis Electronics position performs unexpectedly, EV Technology 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 EV Technology will offset losses from the drop in EV Technology's long position.| Genesis Electronics vs. The A2 Milk | Genesis Electronics vs. Artisan Consumer Goods | Genesis Electronics vs. General Mills |
| EV Technology vs. Genesis Electronics Group | EV Technology vs. Phoenix Motor Common | EV Technology vs. AYRO Inc | EV Technology vs. Mullen Automotive |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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