Gates Industrial Correlations

GTES Stock

USD 19.36 0.30 1.53%

The current 90-days correlation between Gates Industrial and Crane NXT Co is 0.35 (i.e., Weak diversification). The correlation of Gates Industrial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Gates Industrial Correlation With Market

Good diversification

The correlation between Gates Industrial and DJI is -0.06 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Gates Industrial and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gates Industrial. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.

For more information on how to buy Gates Stock please use our How to Invest in Gates Industrial guide.

Moving together with Gates Stock

0.66	PH	Parker Hannifin	Pair Corr
0.65	AME	Ametek Inc	Pair Corr
0.77	CMI	Cummins	Pair Corr
0.72	DOV	Dover	Pair Corr
0.77	NPO	Enpro Industries	Pair Corr
0.78	ROK	Rockwell Automation	Pair Corr

Related Correlations Analysis

	CXT	DCI	CIR	ITT	FELE	JBT	HLIO	GRC	GGG
CXT		0.52	0.0	0.82	-0.1	0.0	0.61	-0.02	-0.05	CXT
DCI	0.52		0.0	0.67	0.54	0.0	0.29	0.46	0.62	DCI
CIR	0.0	0.0		0.0	0.0	0.0	0.0	0.0	0.0	CIR
ITT	0.82	0.67	0.0		0.23	0.0	0.72	0.41	0.34	ITT
FELE	-0.1	0.54	0.0	0.23		0.0	-0.07	0.72	0.86	FELE
JBT	0.0	0.0	0.0	0.0	0.0		0.0	0.0	0.0	JBT
HLIO	0.61	0.29	0.0	0.72	-0.07	0.0		0.43	0.03	HLIO
GRC	-0.02	0.46	0.0	0.41	0.72	0.0	0.43		0.64	GRC
GGG	-0.05	0.62	0.0	0.34	0.86	0.0	0.03	0.64		GGG
	CXT	DCI	CIR	ITT	FELE	JBT	HLIO	GRC	GGG

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

GGG	+ 0.86	FELE
ITT	+ 0.82	CXT
HLIO	+ 0.72	ITT
GRC	+ 0.72	FELE
ITT	+ 0.67	DCI
GGG	+ 0.64	GRC

High negative correlations

FELE	- 0.1	CXT
HLIO	- 0.07	FELE
GGG	- 0.05	CXT
GRC	- 0.02	CXT
GGG	- 0.0	JBT
GRC	- 0.0	JBT

Risk-Adjusted Indicators

There is a big difference between Gates Stock performing well and Gates Industrial Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Gates Industrial's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
CXT	1.23	(0.17)	0.60	2.27	(2.67)	7.85
DCI	1.01	(0.04)	(0.13)	1.91	(2.15)	4.34
CIR	0.00	0.00	0.00	0.00	0.00	0.00
ITT	1.29	(0.09)	(0.14)	2.91	(2.75)	7.23
FELE	1.04	(0.05)	(0.14)	2.00	(1.71)	8.22
JBT	0.00	0.00	0.00	0.00	0.00	0.00
HLIO	1.47	(0.57)	(0.56)	2.65	(4.00)	11.98
GRC	1.23	(0.10)	(0.19)	2.20	(2.48)	6.72
GGG	0.97	(0.03)	(0.11)	1.60	(2.25)	4.96

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