Correlation Between Interlink Electronics and Genasys

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

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

Diversification Opportunities for Interlink Electronics and Genasys

0.27

Correlation Coefficient

Interlink Electronics  Genasys

Modest diversification

The 3 months correlation between Interlink and Genasys is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Interlink Electronics and Genasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genasys and Interlink 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 Interlink Electronics 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 Interlink Electronics i.e., Interlink Electronics and Genasys go up and down completely randomly.

Pair Corralation between Interlink Electronics and Genasys

Given the investment horizon of 90 days Interlink Electronics is expected to under-perform the Genasys. In addition to that, Interlink Electronics is 2.37 times more volatile than Genasys. It trades about -0.14 of its total potential returns per unit of risk. Genasys is currently generating about -0.01 per unit of volatility. If you would invest  224.00  in Genasys on October 8, 2025 and sell it today you would lose (8.00) from holding Genasys or give up 3.57% of portfolio value over 90 days.

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

Interlink Electronics  vs.  Genasys

Interlink Electronics

Risk-Adjusted Performance

Weakest

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

Genasys

Risk-Adjusted Performance

Weakest

Over the last 90 days Genasys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Genasys is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Interlink Electronics and Genasys

The main advantage of trading using opposite Interlink Electronics and Genasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlink Electronics 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 Interlink Electronics 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.