Correlation Between Genesis Electronics and Jaco Electronics

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Can any of the company-specific risk be diversified away by investing in both Genesis Electronics and Jaco Electronics 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 Genesis Electronics and Jaco Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genesis Electronics Group and Jaco Electronics, you can compare the effects of market volatilities on Genesis Electronics and Jaco Electronics 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 Genesis Electronics with a short position of Jaco Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesis Electronics and Jaco Electronics.

Diversification Opportunities for Genesis Electronics and Jaco Electronics

1.0
  Correlation Coefficient

No risk reduction

The 3 months correlation between Genesis and Jaco is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Genesis Electronics Group and Jaco Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaco Electronics and Genesis Electronics 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 Genesis Electronics Group are associated (or correlated) with Jaco Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaco Electronics has no effect on the direction of Genesis Electronics i.e., Genesis Electronics and Jaco Electronics go up and down completely randomly.

Pair Corralation between Genesis Electronics and Jaco Electronics

If you would invest  0.01  in Jaco Electronics on September 12, 2025 and sell it today you would earn a total of  0.00  from holding Jaco Electronics or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Genesis Electronics Group  vs.  Jaco Electronics

 Performance 
       Timeline  
Genesis Electronics 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Genesis Electronics Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Genesis Electronics is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
Jaco Electronics 

Risk-Adjusted Performance

Weakest

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

Genesis Electronics and Jaco Electronics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Genesis Electronics and Jaco Electronics

The main advantage of trading using opposite Genesis Electronics and Jaco Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genesis Electronics position performs unexpectedly, Jaco Electronics 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 Jaco Electronics will offset losses from the drop in Jaco Electronics' long position.
The idea behind Genesis Electronics Group and Jaco Electronics 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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