Correlation Between Current Water and Gencor Industries
Can any of the company-specific risk be diversified away by investing in both Current Water 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 Current Water and Gencor Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Current Water Technologies and Gencor Industries, you can compare the effects of market volatilities on Current Water 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 Current Water with a short position of Gencor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Current Water and Gencor Industries.
Diversification Opportunities for Current Water and Gencor Industries
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Current and Gencor is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Current Water Technologies and Gencor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gencor Industries and Current Water 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 Current Water Technologies 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 Current Water i.e., Current Water and Gencor Industries go up and down completely randomly.
Pair Corralation between Current Water and Gencor Industries
Assuming the 90 days trading horizon Current Water Technologies is expected to generate 3.91 times more return on investment than Gencor Industries. However, Current Water is 3.91 times more volatile than Gencor Industries. It trades about 0.08 of its potential returns per unit of risk. Gencor Industries is currently generating about 0.0 per unit of risk. If you would invest 2.00 in Current Water Technologies on July 20, 2025 and sell it today you would earn a total of 0.50 from holding Current Water Technologies or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.92% |
| Values | Daily Returns |
Current Water Technologies vs. Gencor Industries
Performance |
| Timeline |
| Current Water Techno |
| Gencor Industries |
Current Water and Gencor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Current Water and Gencor Industries
The main advantage of trading using opposite Current Water and Gencor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Current Water 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.| Current Water vs. Eguana Technologies | Current Water vs. Appulse Corp | Current Water vs. Cielo Waste Solutions | Current Water vs. Braille Energy Systems |
| Gencor Industries vs. Innovative Solutions and | Gencor Industries vs. Perma Pipe International Holdings | Gencor Industries vs. Diana Shipping | Gencor Industries vs. Alta Equipment Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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