Correlation Between Trimble and Genasys

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

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

Diversification Opportunities for Trimble and Genasys

0.18

Correlation Coefficient

Trimble  Genasys

Average diversification

The 3 months correlation between Trimble and Genasys is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Trimble and Genasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genasys and Trimble 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 Trimble 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 Trimble i.e., Trimble and Genasys go up and down completely randomly.

Pair Corralation between Trimble and Genasys

Given the investment horizon of 90 days Trimble is expected to generate 0.23 times more return on investment than Genasys. However, Trimble is 4.3 times less risky than Genasys. It trades about -0.02 of its potential returns per unit of risk. Genasys is currently generating about -0.06 per unit of risk. If you would invest  7,297  in Trimble on November 28, 2024 and sell it today you would lose (161.00) from holding Trimble or give up 2.21% of portfolio value over 90 days.

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

Trimble  vs.  Genasys

Trimble

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trimble has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Trimble is not utilizing all of its potentials. The latest stock price disturbance, 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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Trimble and Genasys

The main advantage of trading using opposite Trimble and Genasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimble 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 Trimble 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.