Correlation Between FLT Old and Gentex
Can any of the company-specific risk be diversified away by investing in both FLT Old 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 FLT Old and Gentex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLT Old and Gentex, you can compare the effects of market volatilities on FLT Old 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 FLT Old with a short position of Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLT Old and Gentex.
Diversification Opportunities for FLT Old and Gentex
Very weak diversification
The 3 months correlation between FLT and Gentex is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding FLT Old and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex and FLT Old 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 FLT Old 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 FLT Old i.e., FLT Old and Gentex go up and down completely randomly.
Pair Corralation between FLT Old and Gentex
If you would invest 26,793 in FLT Old on October 20, 2024 and sell it today you would earn a total of 0.00 from holding FLT Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
FLT Old vs. Gentex
Performance |
| Timeline |
| FLT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gentex |
FLT Old and Gentex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLT Old and Gentex
The main advantage of trading using opposite FLT Old and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLT Old 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.| FLT Old vs. Gentex | FLT Old vs. Sphere Entertainment Co | FLT Old vs. Kingboard Chemical Holdings | FLT Old vs. Sensient Technologies |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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