Correlation Between Gentex and Thermedics
Can any of the company-specific risk be diversified away by investing in both Gentex and Thermedics 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 Gentex and Thermedics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gentex and Thermedics, you can compare the effects of market volatilities on Gentex and Thermedics 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 Gentex with a short position of Thermedics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentex and Thermedics.
Diversification Opportunities for Gentex and Thermedics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gentex and Thermedics is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gentex and Thermedics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermedics and Gentex 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 Gentex are associated (or correlated) with Thermedics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermedics has no effect on the direction of Gentex i.e., Gentex and Thermedics go up and down completely randomly.
Pair Corralation between Gentex and Thermedics
If you would invest 3,019 in Gentex on September 12, 2024 and sell it today you would earn a total of 72.00 from holding Gentex or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Gentex vs. Thermedics
Performance |
| Timeline |
| Gentex |
| Thermedics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gentex and Thermedics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentex and Thermedics
The main advantage of trading using opposite Gentex and Thermedics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentex position performs unexpectedly, Thermedics 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 Thermedics will offset losses from the drop in Thermedics' long position.The idea behind Gentex and Thermedics 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.| Thermedics vs. Sphere Entertainment Co | Thermedics vs. Weibo Corp | Thermedics vs. Freedom Bank of | Thermedics vs. Anterix |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |