Correlation Between Goff Corp and Genesis Electronics

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

Diversification Opportunities for Goff Corp and Genesis Electronics

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  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Goff Corp and Genesis Electronics

Given the investment horizon of 90 days Goff Corp is expected to generate 4.75 times more return on investment than Genesis Electronics. However, Goff Corp is 4.75 times more volatile than Genesis Electronics Group. It trades about 0.09 of its potential returns per unit of risk. Genesis Electronics Group is currently generating about -0.02 per unit of risk. If you would invest  1.17  in Goff Corp on August 29, 2024 and sell it today you would lose (0.27) from holding Goff Corp or give up 23.08% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Goff Corp  vs.  Genesis Electronics Group

 Performance 
       Timeline  
Goff Corp 

Risk-Adjusted Performance

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Over the last 90 days Goff Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Goff Corp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
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 fairly strong technical and fundamental indicators, Genesis Electronics is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Goff Corp and Genesis Electronics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Goff Corp and Genesis Electronics

The main advantage of trading using opposite Goff Corp and Genesis Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goff Corp 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 Goff Corp 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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