Correlation Between Genasys and Garmin

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

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

Diversification Opportunities for Genasys and Garmin

-0.37

Correlation Coefficient

Genasys  Garmin

Very good diversification

The 3 months correlation between Genasys and Garmin is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Genasys and Garmin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garmin 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 Garmin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garmin has no effect on the direction of Genasys i.e., Genasys and Garmin go up and down completely randomly.

Pair Corralation between Genasys and Garmin

Given the investment horizon of 90 days Genasys is expected to under-perform the Garmin. In addition to that, Genasys is 6.56 times more volatile than Garmin. It trades about -0.21 of its total potential returns per unit of risk. Garmin is currently generating about -0.25 per unit of volatility. If you would invest  21,857  in Garmin on October 9, 2024 and sell it today you would lose (1,074) from holding Garmin or give up 4.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Genasys  vs.  Garmin

Genasys

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Garmin

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Garmin are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain primary indicators, Garmin displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genasys and Garmin

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

The idea behind Genasys and Garmin 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.