Correlation Between Fitbit and Genasys
Can any of the company-specific risk be diversified away by investing in both Fitbit 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 Fitbit and Genasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fitbit Inc and Genasys, you can compare the effects of market volatilities on Fitbit 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 Fitbit with a short position of Genasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fitbit and Genasys.
Diversification Opportunities for Fitbit and Genasys
Pay attention - limited upside
The 3 months correlation between Fitbit and Genasys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fitbit Inc and Genasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genasys and Fitbit 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 Fitbit Inc 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 Fitbit i.e., Fitbit and Genasys go up and down completely randomly.
Pair Corralation between Fitbit and Genasys
If you would invest (100.00) in Fitbit Inc on December 19, 2023 and sell it today you would earn a total of 100.00 from holding Fitbit Inc or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Fitbit Inc vs. Genasys
Performance |
Timeline |
Fitbit Inc |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Genasys |
Fitbit and Genasys Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fitbit and Genasys
The main advantage of trading using opposite Fitbit and Genasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fitbit 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.Fitbit vs. GMS Inc | Fitbit vs. Mid Atlantic Home Health | Fitbit vs. Flexible Solutions International | Fitbit vs. Transphorm Technology |
Genasys vs. Sensata Technologies Holding | Genasys vs. Electro Sensors | Genasys vs. Energous | Genasys vs. Wrap Technologies |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities |