Correlation Between MagnaChip Semiconductor and Genasys
Can any of the company-specific risk be diversified away by investing in both MagnaChip Semiconductor 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 MagnaChip Semiconductor and Genasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MagnaChip Semiconductor and Genasys, you can compare the effects of market volatilities on MagnaChip Semiconductor 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 MagnaChip Semiconductor with a short position of Genasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of MagnaChip Semiconductor and Genasys.
Diversification Opportunities for MagnaChip Semiconductor and Genasys
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MagnaChip and Genasys is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor and Genasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genasys and MagnaChip Semiconductor 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 MagnaChip Semiconductor 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 MagnaChip Semiconductor i.e., MagnaChip Semiconductor and Genasys go up and down completely randomly.
Pair Corralation between MagnaChip Semiconductor and Genasys
Allowing for the 90-day total investment horizon MagnaChip Semiconductor is expected to under-perform the Genasys. But the stock apears to be less risky and, when comparing its historical volatility, MagnaChip Semiconductor is 1.09 times less risky than Genasys. The stock trades about -0.01 of its potential returns per unit of risk. The Genasys is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 220.00 in Genasys on September 12, 2025 and sell it today you would lose (5.00) from holding Genasys or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MagnaChip Semiconductor vs. Genasys
Performance |
| Timeline |
| MagnaChip Semiconductor |
| Genasys |
MagnaChip Semiconductor and Genasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MagnaChip Semiconductor and Genasys
The main advantage of trading using opposite MagnaChip Semiconductor and Genasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MagnaChip Semiconductor 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.| MagnaChip Semiconductor vs. Amtech Systems | MagnaChip Semiconductor vs. inTest | MagnaChip Semiconductor vs. Nano Labs | MagnaChip Semiconductor vs. Atomera |
| Genasys vs. Soluna Holdings | Genasys vs. Mind Technology | Genasys vs. Skillz Platform | Genasys vs. Playstudios |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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