Correlation Between Acorn Energy and Genasys

Can any of the company-specific risk be diversified away by investing in both Acorn Energy 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 Acorn Energy and Genasys into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Acorn Energy and Genasys, you can compare the effects of market volatilities on Acorn Energy 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 Acorn Energy with a short position of Genasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acorn Energy and Genasys.

Diversification Opportunities for Acorn Energy and Genasys

0.0

Correlation Coefficient

Acorn Energy  Genasys

Pay attention - limited upside

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

Pair Corralation between Acorn Energy and Genasys

If you would invest (100.00) in Acorn Energy on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Acorn Energy or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Acorn Energy  vs.  Genasys

Acorn Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acorn Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Acorn Energy is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Genasys

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genasys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Acorn Energy and Genasys

The main advantage of trading using opposite Acorn Energy and Genasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acorn Energy 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.

The idea behind Acorn Energy and Genasys 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.