Correlation Between NanoTech Gaming and Gentex

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

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

Diversification Opportunities for NanoTech Gaming and Gentex

0.0

Correlation Coefficient

NanoTech Gaming  Gentex

Pay attention - limited upside

The 3 months correlation between NanoTech and Gentex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NanoTech Gaming and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex and NanoTech Gaming 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 NanoTech Gaming 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 NanoTech Gaming i.e., NanoTech Gaming and Gentex go up and down completely randomly.

Pair Corralation between NanoTech Gaming and Gentex

If you would invest  0.01  in NanoTech Gaming on December 20, 2024 and sell it today you would earn a total of  0.00  from holding NanoTech Gaming or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.16%
Values	Daily Returns

NanoTech Gaming  vs.  Gentex

NanoTech Gaming

Risk-Adjusted Performance

Very Weak

Over the last 90 days NanoTech Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, NanoTech Gaming is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Gentex

Risk-Adjusted Performance

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 uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with NanoTech Gaming and Gentex

The main advantage of trading using opposite NanoTech Gaming and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NanoTech Gaming 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 NanoTech Gaming 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.