Correlation Between Sobr Safe and Genasys

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

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

Diversification Opportunities for Sobr Safe and Genasys

0.71

Correlation Coefficient

Sobr Safe  Genasys

Poor diversification

The 3 months correlation between Sobr and Genasys is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sobr Safe and Genasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genasys and Sobr Safe 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 Sobr Safe 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 Sobr Safe i.e., Sobr Safe and Genasys go up and down completely randomly.

Pair Corralation between Sobr Safe and Genasys

Given the investment horizon of 90 days Sobr Safe is expected to under-perform the Genasys. In addition to that, Sobr Safe is 2.1 times more volatile than Genasys. It trades about -0.1 of its total potential returns per unit of risk. Genasys is currently generating about -0.02 per unit of volatility. If you would invest  260.00  in Genasys on December 28, 2024 and sell it today you would lose (33.00) from holding Genasys or give up 12.69% of portfolio value over 90 days.

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

Sobr Safe  vs.  Genasys

Sobr Safe

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sobr Safe has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail 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 Sobr Safe and Genasys

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

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.