Correlation Between IsoRay and Gentex

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

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

Diversification Opportunities for IsoRay and Gentex

-0.73

Correlation Coefficient

IsoRay  Gentex

Pay attention - limited upside

The 3 months correlation between IsoRay and Gentex is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding IsoRay Inc and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex and IsoRay 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 IsoRay Inc 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 IsoRay i.e., IsoRay and Gentex go up and down completely randomly.

Pair Corralation between IsoRay and Gentex

If you would invest  38.00  in IsoRay Inc on February 3, 2024 and sell it today you would earn a total of  0.00  from holding IsoRay Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	4.55%
Values	Daily Returns

IsoRay Inc  vs.  Gentex

IsoRay Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IsoRay Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, IsoRay is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Gentex

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gentex are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Gentex is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with IsoRay and Gentex

The main advantage of trading using opposite IsoRay and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IsoRay 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 IsoRay Inc 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.