Correlation Between MOBILE FACTORY and Gentex
Can any of the company-specific risk be diversified away by investing in both MOBILE FACTORY and Gentex 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 MOBILE FACTORY and Gentex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOBILE FACTORY INC and Gentex, you can compare the effects of market volatilities on MOBILE FACTORY and Gentex 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 MOBILE FACTORY with a short position of Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBILE FACTORY and Gentex.
Diversification Opportunities for MOBILE FACTORY and Gentex
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MOBILE and Gentex is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding MOBILE FACTORY INC and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex and MOBILE FACTORY 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 MOBILE FACTORY INC are associated (or correlated) with Gentex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentex has no effect on the direction of MOBILE FACTORY i.e., MOBILE FACTORY and Gentex go up and down completely randomly.
Pair Corralation between MOBILE FACTORY and Gentex
Assuming the 90 days horizon MOBILE FACTORY INC is expected to under-perform the Gentex. In addition to that, MOBILE FACTORY is 1.57 times more volatile than Gentex. It trades about 0.0 of its total potential returns per unit of risk. Gentex is currently generating about 0.01 per unit of volatility. If you would invest 2,610 in Gentex on October 30, 2024 and sell it today you would lose (10.00) from holding Gentex or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
MOBILE FACTORY INC vs. Gentex
Performance |
| Timeline |
| MOBILE FACTORY INC |
| Gentex |
MOBILE FACTORY and Gentex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOBILE FACTORY and Gentex
The main advantage of trading using opposite MOBILE FACTORY and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBILE FACTORY position performs unexpectedly, Gentex 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 Gentex will offset losses from the drop in Gentex's long position.| MOBILE FACTORY vs. Entravision Communications | MOBILE FACTORY vs. CITIC Telecom International | MOBILE FACTORY vs. CONTAGIOUS GAMING INC | MOBILE FACTORY vs. Highlight Communications AG |
| Gentex vs. Rayonier Advanced Materials | Gentex vs. Compagnie Plastic Omnium | Gentex vs. Playtech plc | Gentex vs. PLAYTIKA HOLDING DL 01 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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