Correlation Between Roebuck Food and Gencor Industries
Can any of the company-specific risk be diversified away by investing in both Roebuck Food and Gencor 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 Roebuck Food and Gencor Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roebuck Food Group and Gencor Industries, you can compare the effects of market volatilities on Roebuck Food and Gencor 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 Roebuck Food with a short position of Gencor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roebuck Food and Gencor Industries.
Diversification Opportunities for Roebuck Food and Gencor Industries
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Roebuck and Gencor is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Roebuck Food Group and Gencor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gencor Industries and Roebuck Food 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 Roebuck Food Group are associated (or correlated) with Gencor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gencor Industries has no effect on the direction of Roebuck Food i.e., Roebuck Food and Gencor Industries go up and down completely randomly.
Pair Corralation between Roebuck Food and Gencor Industries
Assuming the 90 days trading horizon Roebuck Food Group is expected to under-perform the Gencor Industries. But the stock apears to be less risky and, when comparing its historical volatility, Roebuck Food Group is 2.54 times less risky than Gencor Industries. The stock trades about -0.24 of its potential returns per unit of risk. The Gencor Industries is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,524 in Gencor Industries on July 9, 2025 and sell it today you would lose (141.00) from holding Gencor Industries or give up 9.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Roebuck Food Group vs. Gencor Industries
Performance |
| Timeline |
| Roebuck Food Group |
| Gencor Industries |
Roebuck Food and Gencor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roebuck Food and Gencor Industries
The main advantage of trading using opposite Roebuck Food and Gencor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roebuck Food position performs unexpectedly, Gencor 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 Gencor Industries will offset losses from the drop in Gencor Industries' long position.| Roebuck Food vs. Weiss Korea Opportunity | Roebuck Food vs. Chrysalis Investments | Roebuck Food vs. Sherborne Investors Guernsey | Roebuck Food vs. Coor Service Management |
| Gencor Industries vs. Astec Industries | Gencor Industries vs. Hyster Yale Materials Handling | Gencor Industries vs. Rev Group | Gencor Industries vs. Frequency Electronics |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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