Correlation Between Gencor Industries and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Gencor Industries and Hyster Yale 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 Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gencor Industries and Hyster Yale Materials Handling, you can compare the effects of market volatilities on Gencor Industries and Hyster Yale 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 Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gencor Industries and Hyster Yale.
Diversification Opportunities for Gencor Industries and Hyster Yale
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gencor and Hyster is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Gencor Industries and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials 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 Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of Gencor Industries i.e., Gencor Industries and Hyster Yale go up and down completely randomly.
Pair Corralation between Gencor Industries and Hyster Yale
Given the investment horizon of 90 days Gencor Industries is expected to generate 0.75 times more return on investment than Hyster Yale. However, Gencor Industries is 1.33 times less risky than Hyster Yale. It trades about 0.08 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.01 per unit of risk. If you would invest 1,639 in Gencor Industries on August 27, 2024 and sell it today you would earn a total of 595.00 from holding Gencor Industries or generate 36.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gencor Industries vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Gencor Industries |
| Hyster Yale Materials |
Gencor Industries and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gencor Industries and Hyster Yale
The main advantage of trading using opposite Gencor Industries and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gencor Industries position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| Gencor Industries vs. Alamo Group | Gencor Industries vs. Manitowoc | Gencor Industries vs. Manitex International | Gencor Industries vs. Columbus McKinnon |
| Hyster Yale vs. Xos Inc | Hyster Yale vs. Nikola Corp | Hyster Yale vs. Wabash National | Hyster Yale vs. American Premium Water |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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