Correlation Between Genasys and Senstar Technologies

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Can any of the company-specific risk be diversified away by investing in both Genasys and Senstar Technologies 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 Genasys and Senstar Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genasys and Senstar Technologies, you can compare the effects of market volatilities on Genasys and Senstar Technologies 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 Genasys with a short position of Senstar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genasys and Senstar Technologies.

Diversification Opportunities for Genasys and Senstar Technologies

GenasysSenstarDiversified AwayGenasysSenstarDiversified Away100%
-0.66
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Genasys and Senstar is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Genasys and Senstar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senstar Technologies and Genasys 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 Genasys are associated (or correlated) with Senstar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senstar Technologies has no effect on the direction of Genasys i.e., Genasys and Senstar Technologies go up and down completely randomly.

Pair Corralation between Genasys and Senstar Technologies

Given the investment horizon of 90 days Genasys is expected to generate 2.35 times less return on investment than Senstar Technologies. But when comparing it to its historical volatility, Genasys is 1.03 times less risky than Senstar Technologies. It trades about 0.06 of its potential returns per unit of risk. Senstar Technologies is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  128.00  in Senstar Technologies on November 21, 2024 and sell it today you would earn a total of  228.00  from holding Senstar Technologies or generate 178.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Genasys  vs.  Senstar Technologies

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 050100
JavaScript chart by amCharts 3.21.15GNSS SNT
       Timeline  
Genasys 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Genasys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Genasys is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.533.54
Senstar Technologies 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Senstar Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Senstar Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.42.62.833.23.43.63.8

Genasys and Senstar Technologies Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.99-5.99-3.98-1.970.01.933.935.937.939.93 0.0120.0130.0140.015
JavaScript chart by amCharts 3.21.15GNSS SNT
       Returns  

Pair Trading with Genasys and Senstar Technologies

The main advantage of trading using opposite Genasys and Senstar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genasys position performs unexpectedly, Senstar Technologies 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 Senstar Technologies will offset losses from the drop in Senstar Technologies' long position.
The idea behind Genasys and Senstar Technologies 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

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