Correlation Between Geron and ChargePoint Holdings

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

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

Diversification Opportunities for Geron and ChargePoint Holdings

0.78

Correlation Coefficient

Geron  ChargePoint Holdings

Poor diversification

The 3 months correlation between Geron and ChargePoint is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Geron and ChargePoint Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChargePoint Holdings and Geron 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 Geron are associated (or correlated) with ChargePoint Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChargePoint Holdings has no effect on the direction of Geron i.e., Geron and ChargePoint Holdings go up and down completely randomly.

Pair Corralation between Geron and ChargePoint Holdings

Given the investment horizon of 90 days Geron is expected to under-perform the ChargePoint Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Geron is 1.28 times less risky than ChargePoint Holdings. The stock trades about -0.05 of its potential returns per unit of risk. The ChargePoint Holdings is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  1,160  in ChargePoint Holdings on May 4, 2025 and sell it today you would lose (212.00) from holding ChargePoint Holdings or give up 18.28% of portfolio value over 90 days.

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

Geron  vs.  ChargePoint Holdings

Geron

Risk-Adjusted Performance

Very Weak

Over the last 90 days Geron has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

ChargePoint Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days ChargePoint Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Geron and ChargePoint Holdings

The main advantage of trading using opposite Geron and ChargePoint Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron position performs unexpectedly, ChargePoint Holdings 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 ChargePoint Holdings will offset losses from the drop in ChargePoint Holdings' long position.

The idea behind Geron and ChargePoint Holdings 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.