Correlation Between Gencor Industries and Buhler Industries
Can any of the company-specific risk be diversified away by investing in both Gencor Industries and Buhler Industries 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 Gencor Industries and Buhler Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gencor Industries and Buhler Industries, you can compare the effects of market volatilities on Gencor Industries and Buhler Industries 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 Gencor Industries with a short position of Buhler Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gencor Industries and Buhler Industries.
Diversification Opportunities for Gencor Industries and Buhler Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gencor and Buhler is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gencor Industries and Buhler Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buhler Industries and Gencor Industries 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 Gencor Industries are associated (or correlated) with Buhler Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buhler Industries has no effect on the direction of Gencor Industries i.e., Gencor Industries and Buhler Industries go up and down completely randomly.
Pair Corralation between Gencor Industries and Buhler Industries
If you would invest 2,015 in Gencor Industries on August 28, 2024 and sell it today you would earn a total of 227.00 from holding Gencor Industries or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gencor Industries vs. Buhler Industries
Performance |
| Timeline |
| Gencor Industries |
| Buhler Industries |
Gencor Industries and Buhler Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gencor Industries and Buhler Industries
The main advantage of trading using opposite Gencor Industries and Buhler Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gencor Industries position performs unexpectedly, Buhler Industries 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 Buhler Industries will offset losses from the drop in Buhler Industries' long position.| Gencor Industries vs. Alamo Group | Gencor Industries vs. Manitowoc | Gencor Industries vs. Manitex International | Gencor Industries vs. Columbus McKinnon |
| Buhler Industries vs. Element Solutions | Buhler Industries vs. Orion Engineered Carbons | Buhler Industries vs. Minerals Technologies | Buhler Industries vs. Ingevity Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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