Correlation Between Touchpoint Group and Genesis Electronics

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

Diversification Opportunities for Touchpoint Group and Genesis Electronics

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Touchpoint and Genesis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Touchpoint Group Holdings and Genesis Electronics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Electronics and Touchpoint Group 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 Touchpoint Group Holdings 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 Touchpoint Group i.e., Touchpoint Group and Genesis Electronics go up and down completely randomly.

Pair Corralation between Touchpoint Group and Genesis Electronics

If you would invest  0.01  in Touchpoint Group Holdings on August 31, 2024 and sell it today you would earn a total of  0.00  from holding Touchpoint Group Holdings or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.27%
ValuesDaily Returns

Touchpoint Group Holdings  vs.  Genesis Electronics Group

 Performance 
       Timeline  
Touchpoint Group Holdings 

Risk-Adjusted Performance

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Over the last 90 days Touchpoint Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Touchpoint Group is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.
Genesis Electronics 

Risk-Adjusted Performance

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Weak
 
Strong
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 fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Touchpoint Group and Genesis Electronics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Touchpoint Group and Genesis Electronics

The main advantage of trading using opposite Touchpoint Group and Genesis Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchpoint Group 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 Touchpoint Group Holdings 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.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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