Correlation Between Gencor Industries and CEA Industries
Can any of the company-specific risk be diversified away by investing in both Gencor Industries and CEA 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 CEA 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 CEA Industries Warrant, you can compare the effects of market volatilities on Gencor Industries and CEA 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 CEA Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gencor Industries and CEA Industries.
Diversification Opportunities for Gencor Industries and CEA Industries
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gencor and CEA is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Gencor Industries and CEA Industries Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEA Industries Warrant 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 CEA Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEA Industries Warrant has no effect on the direction of Gencor Industries i.e., Gencor Industries and CEA Industries go up and down completely randomly.
Pair Corralation between Gencor Industries and CEA Industries
Given the investment horizon of 90 days Gencor Industries is expected to under-perform the CEA Industries. But the stock apears to be less risky and, when comparing its historical volatility, Gencor Industries is 50.49 times less risky than CEA Industries. The stock trades about -0.12 of its potential returns per unit of risk. The CEA Industries Warrant is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 0.00 in CEA Industries Warrant on December 5, 2024 and sell it today you would earn a total of 2.50 from holding CEA Industries Warrant or generate 9.223372036854776E16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 59.02% |
Values | Daily Returns |
Gencor Industries vs. CEA Industries Warrant
Performance |
Timeline |
Gencor Industries |
CEA Industries Warrant |
Gencor Industries and CEA Industries Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gencor Industries and CEA Industries
The main advantage of trading using opposite Gencor Industries and CEA Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gencor Industries position performs unexpectedly, CEA 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 CEA Industries will offset losses from the drop in CEA Industries' long position.Gencor Industries vs. Alamo Group | Gencor Industries vs. Manitowoc | Gencor Industries vs. Columbus McKinnon | Gencor Industries vs. Rev Group |
CEA Industries vs. CEA Industries | CEA Industries vs. Thayer Ventures Acquisition | CEA Industries vs. Iveda Solutions Warrant |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Global Correlations Find global opportunities by holding instruments from different markets |