Correlation Between Polestar Automotive and Genesis Electronics
Can any of the company-specific risk be diversified away by investing in both Polestar Automotive 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 Polestar Automotive and Genesis Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polestar Automotive Holding and Genesis Electronics Group, you can compare the effects of market volatilities on Polestar Automotive 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 Polestar Automotive with a short position of Genesis Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polestar Automotive and Genesis Electronics.
Diversification Opportunities for Polestar Automotive and Genesis Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Polestar and Genesis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Polestar Automotive Holding and Genesis Electronics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Electronics and Polestar Automotive 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 Polestar Automotive Holding 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 Polestar Automotive i.e., Polestar Automotive and Genesis Electronics go up and down completely randomly.
Pair Corralation between Polestar Automotive and Genesis Electronics
If you would invest 16.00 in Polestar Automotive Holding on October 12, 2024 and sell it today you would earn a total of 5.00 from holding Polestar Automotive Holding or generate 31.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polestar Automotive Holding vs. Genesis Electronics Group
Performance |
| Timeline |
| Polestar Automotive |
| Genesis Electronics |
Polestar Automotive and Genesis Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polestar Automotive and Genesis Electronics
The main advantage of trading using opposite Polestar Automotive and Genesis Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polestar Automotive 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.| Polestar Automotive vs. Lucid Group | Polestar Automotive vs. Canoo Inc | Polestar Automotive vs. Rivian Automotive | Polestar Automotive vs. Aston Martin Lagonda |
| Genesis Electronics vs. Volkswagen AG | Genesis Electronics vs. Volcon Inc | Genesis Electronics vs. Volkswagen AG Pref | Genesis Electronics vs. Polestar Automotive Holding |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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