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
Pay attention - limited upside
The 3 months correlation between Energous and Genasys is -0.85. 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. In addition to that, Energous is 1.65 times more volatile than Genasys. It trades about -0.33 of its total potential returns per unit of risk. Genasys is currently generating about 0.12 per unit of volatility. If you would invest 362.00 in Genasys on August 31, 2024 and sell it today you would earn a total of 17.00 from holding Genasys or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energous vs. Genasys
Performance |
| Timeline |
| Energous |
| Genasys |
Energous and Genasys Volatility Contrast
Predicted Return Density |
| Returns |
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.| Energous vs. Cepton Inc | Energous vs. SaverOne 2014 Ltd | Energous vs. Kraken Robotics | Energous vs. Focus Universal |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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