Correlation Between Gencor Industries and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Gencor Industries and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gencor Industries and Dow Jones Industrial, you can compare the effects of market volatilities on Gencor Industries and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gencor Industries and Dow Jones.
Diversification Opportunities for Gencor Industries and Dow Jones
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gencor and Dow is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Gencor Industries and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Gencor Industries i.e., Gencor Industries and Dow Jones go up and down completely randomly.
Pair Corralation between Gencor Industries and Dow Jones
Given the investment horizon of 90 days Gencor Industries is expected to generate 7.04 times less return on investment than Dow Jones. In addition to that, Gencor Industries is 4.08 times more volatile than Dow Jones Industrial. It trades about 0.0 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of volatility. If you would invest 4,432,307 in Dow Jones Industrial on July 20, 2025 and sell it today you would earn a total of 186,754 from holding Dow Jones Industrial or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gencor Industries vs. Dow Jones Industrial
Performance |
| Timeline |
Gencor Industries and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Gencor Industries
Pair trading matchups for Gencor Industries
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Gencor Industries and Dow Jones
The main advantage of trading using opposite Gencor Industries and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gencor Industries position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Gencor Industries vs. Astec Industries | Gencor Industries vs. Hyster Yale Materials Handling | Gencor Industries vs. Rev Group | Gencor Industries vs. Frequency Electronics |
| Dow Jones vs. Romana Food Brands | Dow Jones vs. Vantage Drilling International | Dow Jones vs. Precision Drilling | Dow Jones vs. SD Standard Drilling |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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