Correlation Between NuRAN Wireless and Gentex

Can any of the company-specific risk be diversified away by investing in both NuRAN Wireless 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 NuRAN Wireless and Gentex into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NuRAN Wireless and Gentex, you can compare the effects of market volatilities on NuRAN Wireless 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 NuRAN Wireless with a short position of Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of NuRAN Wireless and Gentex.

Diversification Opportunities for NuRAN Wireless and Gentex

0.74

Correlation Coefficient

NuRAN Wireless  Gentex

Poor diversification

The 3 months correlation between NuRAN and Gentex is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding NuRAN Wireless and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex and NuRAN Wireless 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 NuRAN Wireless 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 NuRAN Wireless i.e., NuRAN Wireless and Gentex go up and down completely randomly.

Pair Corralation between NuRAN Wireless and Gentex

Assuming the 90 days horizon NuRAN Wireless is expected to under-perform the Gentex. In addition to that, NuRAN Wireless is 2.85 times more volatile than Gentex. It trades about -0.1 of its total potential returns per unit of risk. Gentex is currently generating about -0.15 per unit of volatility. If you would invest  3,116  in Gentex on October 26, 2024 and sell it today you would lose (319.00) from holding Gentex or give up 10.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.16%
Values	Daily Returns

NuRAN Wireless  vs.  Gentex

NuRAN Wireless

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NuRAN Wireless has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Gentex

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gentex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with NuRAN Wireless and Gentex

The main advantage of trading using opposite NuRAN Wireless and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NuRAN Wireless 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.

The idea behind NuRAN Wireless and Gentex 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.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.