Correlation Between MEDICAL FACILITIES and Gentex
Can any of the company-specific risk be diversified away by investing in both MEDICAL FACILITIES 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 MEDICAL FACILITIES and Gentex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDICAL FACILITIES NEW and Gentex, you can compare the effects of market volatilities on MEDICAL FACILITIES 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 MEDICAL FACILITIES with a short position of Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICAL FACILITIES and Gentex.
Diversification Opportunities for MEDICAL FACILITIES and Gentex
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MEDICAL and Gentex is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding MEDICAL FACILITIES NEW and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex and MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW 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 MEDICAL FACILITIES i.e., MEDICAL FACILITIES and Gentex go up and down completely randomly.
Pair Corralation between MEDICAL FACILITIES and Gentex
Assuming the 90 days horizon MEDICAL FACILITIES NEW is expected to generate 1.69 times more return on investment than Gentex. However, MEDICAL FACILITIES is 1.69 times more volatile than Gentex. It trades about 0.08 of its potential returns per unit of risk. Gentex is currently generating about -0.04 per unit of risk. If you would invest 798.00 in MEDICAL FACILITIES NEW on September 24, 2024 and sell it today you would earn a total of 242.00 from holding MEDICAL FACILITIES NEW or generate 30.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDICAL FACILITIES NEW vs. Gentex
Performance |
| Timeline |
| MEDICAL FACILITIES NEW |
| Gentex |
MEDICAL FACILITIES and Gentex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDICAL FACILITIES and Gentex
The main advantage of trading using opposite MEDICAL FACILITIES and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICAL FACILITIES 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.| MEDICAL FACILITIES vs. Ramsay Health Care | MEDICAL FACILITIES vs. Medicover AB | MEDICAL FACILITIES vs. Charoen Pokphand Foods |
| Gentex vs. CompuGroup Medical SE | Gentex vs. JJ SNACK FOODS | Gentex vs. MEDICAL FACILITIES NEW | Gentex vs. AUSNUTRIA DAIRY |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |