Correlation Between Genuine Parts and Cetus Capital
Can any of the company-specific risk be diversified away by investing in both Genuine Parts and Cetus Capital 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 Genuine Parts and Cetus Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genuine Parts Co and Cetus Capital Acquisition, you can compare the effects of market volatilities on Genuine Parts and Cetus Capital 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 Genuine Parts with a short position of Cetus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genuine Parts and Cetus Capital.
Diversification Opportunities for Genuine Parts and Cetus Capital
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genuine and Cetus is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Genuine Parts Co and Cetus Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cetus Capital Acquisition and Genuine Parts 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 Genuine Parts Co are associated (or correlated) with Cetus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cetus Capital Acquisition has no effect on the direction of Genuine Parts i.e., Genuine Parts and Cetus Capital go up and down completely randomly.
Pair Corralation between Genuine Parts and Cetus Capital
Considering the 90-day investment horizon Genuine Parts Co is expected to under-perform the Cetus Capital. But the stock apears to be less risky and, when comparing its historical volatility, Genuine Parts Co is 28.68 times less risky than Cetus Capital. The stock trades about -0.03 of its potential returns per unit of risk. The Cetus Capital Acquisition is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,063 in Cetus Capital Acquisition on October 25, 2024 and sell it today you would earn a total of 78.00 from holding Cetus Capital Acquisition or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 28.48% |
| Values | Daily Returns |
Genuine Parts Co vs. Cetus Capital Acquisition
Performance |
| Timeline |
| Genuine Parts |
| Cetus Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genuine Parts and Cetus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genuine Parts and Cetus Capital
The main advantage of trading using opposite Genuine Parts and Cetus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genuine Parts position performs unexpectedly, Cetus Capital 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 Cetus Capital will offset losses from the drop in Cetus Capital's long position.| Genuine Parts vs. Dover | Genuine Parts vs. Cincinnati Financial | Genuine Parts vs. Leggett Platt Incorporated | Genuine Parts vs. WW Grainger |
| Cetus Capital vs. Asbury Automotive Group | Cetus Capital vs. Paysafe | Cetus Capital vs. Datadog | Cetus Capital vs. Genuine Parts Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |