Correlation Between Genasys and RSTN Old

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

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

Diversification Opportunities for Genasys and RSTN Old

0.66

Correlation Coefficient

Genasys  RSTN Old

Poor diversification

The 3 months correlation between Genasys and RSTN is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Genasys and RSTN Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RSTN Old 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 RSTN Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RSTN Old has no effect on the direction of Genasys i.e., Genasys and RSTN Old go up and down completely randomly.

Pair Corralation between Genasys and RSTN Old

Given the investment horizon of 90 days Genasys is expected to generate 8.3 times less return on investment than RSTN Old. But when comparing it to its historical volatility, Genasys is 1.18 times less risky than RSTN Old. It trades about 0.0 of its potential returns per unit of risk. RSTN Old is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  138.00  in RSTN Old on October 10, 2024 and sell it today you would earn a total of  4.00  from holding RSTN Old or generate 2.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	91.72%
Values	Daily Returns

Genasys  vs.  RSTN Old

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.

RSTN Old

Risk-Adjusted Performance

0 of 100

Weak

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

Pair Trading with Genasys and RSTN Old

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

The idea behind Genasys and RSTN Old 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.