Correlation Between Eltek and Genasys

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

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

Diversification Opportunities for Eltek and Genasys

0.3

Correlation Coefficient

Eltek  Genasys

Weak diversification

The 3 months correlation between Eltek and Genasys is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Eltek and Genasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genasys and Eltek 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 Eltek 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 Eltek i.e., Eltek and Genasys go up and down completely randomly.

Pair Corralation between Eltek and Genasys

Given the investment horizon of 90 days Eltek is expected to under-perform the Genasys. In addition to that, Eltek is 2.08 times more volatile than Genasys. It trades about -0.27 of its total potential returns per unit of risk. Genasys is currently generating about -0.15 per unit of volatility. If you would invest  235.00  in Genasys on September 3, 2025 and sell it today you would lose (18.00) from holding Genasys or give up 7.66% of portfolio value over 90 days.

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

Eltek  vs.  Genasys

Eltek

Risk-Adjusted Performance

Weakest

Over the last 90 days Eltek has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Genasys

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Genasys are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Genasys unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eltek and Genasys

The main advantage of trading using opposite Eltek and Genasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eltek 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 Eltek 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.