Correlation Between Cooper Stnd and Gentex
Can any of the company-specific risk be diversified away by investing in both Cooper Stnd 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 Cooper Stnd and Gentex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cooper Stnd and Gentex, you can compare the effects of market volatilities on Cooper Stnd 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 Cooper Stnd with a short position of Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Stnd and Gentex.
Diversification Opportunities for Cooper Stnd and Gentex
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cooper and Gentex is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cooper Stnd and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex and Cooper Stnd 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 Cooper Stnd 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 Cooper Stnd i.e., Cooper Stnd and Gentex go up and down completely randomly.
Pair Corralation between Cooper Stnd and Gentex
Considering the 90-day investment horizon Cooper Stnd is expected to generate 2.89 times more return on investment than Gentex. However, Cooper Stnd is 2.89 times more volatile than Gentex. It trades about 0.09 of its potential returns per unit of risk. Gentex is currently generating about 0.08 per unit of risk. If you would invest 1,328 in Cooper Stnd on August 24, 2024 and sell it today you would earn a total of 112.00 from holding Cooper Stnd or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cooper Stnd vs. Gentex
Performance |
| Timeline |
| Cooper Stnd |
| Gentex |
Cooper Stnd and Gentex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Stnd and Gentex
The main advantage of trading using opposite Cooper Stnd and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Stnd 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.| Cooper Stnd vs. Dorman Products | Cooper Stnd vs. Monro Muffler Brake | Cooper Stnd vs. Standard Motor Products | Cooper Stnd vs. Stoneridge |
| Gentex vs. Fox Factory Holding | Gentex vs. Lear Corporation | Gentex vs. Commercial Vehicle Group | Gentex vs. Stoneridge |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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