Correlation Between Gencor Industries and Intergroup
Can any of the company-specific risk be diversified away by investing in both Gencor Industries and Intergroup 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 Intergroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gencor Industries and The Intergroup, you can compare the effects of market volatilities on Gencor Industries and Intergroup 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 Intergroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gencor Industries and Intergroup.
Diversification Opportunities for Gencor Industries and Intergroup
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gencor and Intergroup is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Gencor Industries and The Intergroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intergroup 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 Intergroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intergroup has no effect on the direction of Gencor Industries i.e., Gencor Industries and Intergroup go up and down completely randomly.
Pair Corralation between Gencor Industries and Intergroup
Given the investment horizon of 90 days Gencor Industries is expected to generate 1.66 times more return on investment than Intergroup. However, Gencor Industries is 1.66 times more volatile than The Intergroup. It trades about 0.16 of its potential returns per unit of risk. The Intergroup is currently generating about -0.03 per unit of risk. If you would invest 2,051 in Gencor Industries on August 25, 2024 and sell it today you would earn a total of 183.00 from holding Gencor Industries or generate 8.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gencor Industries vs. The Intergroup
Performance |
| Timeline |
| Gencor Industries |
| Intergroup |
Gencor Industries and Intergroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gencor Industries and Intergroup
The main advantage of trading using opposite Gencor Industries and Intergroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gencor Industries position performs unexpectedly, Intergroup 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 Intergroup will offset losses from the drop in Intergroup's long position.| Gencor Industries vs. Xos Inc | Gencor Industries vs. Nikola Corp | Gencor Industries vs. Wabash National | Gencor Industries vs. American Premium Water |
| Intergroup vs. Huazhu Group | Intergroup vs. Atour Lifestyle Holdings | Intergroup vs. LuxUrban Hotels | Intergroup vs. InterContinental Hotels Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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