Correlation Between EastGroup Properties and Gentex

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

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

Diversification Opportunities for EastGroup Properties and Gentex

-0.53

Correlation Coefficient

EastGroup Properties  Gentex

Excellent diversification

The 3 months correlation between EastGroup and Gentex is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex and EastGroup Properties 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 EastGroup Properties 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 EastGroup Properties i.e., EastGroup Properties and Gentex go up and down completely randomly.

Pair Corralation between EastGroup Properties and Gentex

Considering the 90-day investment horizon EastGroup Properties is expected to generate 59.66 times less return on investment than Gentex. But when comparing it to its historical volatility, EastGroup Properties is 2.13 times less risky than Gentex. It trades about 0.0 of its potential returns per unit of risk. Gentex is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2,151  in Gentex on May 7, 2025 and sell it today you would earn a total of  463.00  from holding Gentex or generate 21.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

EastGroup Properties  vs.  Gentex

EastGroup Properties

Risk-Adjusted Performance

Weakest

Over the last 90 days EastGroup Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, EastGroup Properties 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

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Gentex are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Gentex showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EastGroup Properties and Gentex

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

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.