Correlation Between Genasys and AERWINS Technologies

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

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

Diversification Opportunities for Genasys and AERWINS Technologies

0.28

Correlation Coefficient

Genasys  AERWINS Technologies

Modest diversification

The 3 months correlation between Genasys and AERWINS is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Genasys and AERWINS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERWINS Technologies and Genasys 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 Genasys are associated (or correlated) with AERWINS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AERWINS Technologies has no effect on the direction of Genasys i.e., Genasys and AERWINS Technologies go up and down completely randomly.

Pair Corralation between Genasys and AERWINS Technologies

If you would invest  297.00  in Genasys on September 5, 2024 and sell it today you would earn a total of  81.00  from holding Genasys or generate 27.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Genasys  vs.  AERWINS Technologies

Genasys

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Genasys are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Genasys unveiled solid returns over the last few months and may actually be approaching a breakup point.

AERWINS Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AERWINS Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, AERWINS Technologies is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Genasys and AERWINS Technologies

The main advantage of trading using opposite Genasys and AERWINS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genasys position performs unexpectedly, AERWINS Technologies 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 AERWINS Technologies will offset losses from the drop in AERWINS Technologies' long position.

The idea behind Genasys and AERWINS Technologies 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.