Correlation Between Generac Holdings and Gartner

Can any of the company-specific risk be diversified away by investing in both Generac Holdings and Gartner 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 Generac Holdings and Gartner into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Generac Holdings and Gartner, you can compare the effects of market volatilities on Generac Holdings and Gartner 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 Generac Holdings with a short position of Gartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generac Holdings and Gartner.

Diversification Opportunities for Generac Holdings and Gartner

-0.63

Correlation Coefficient

Generac Holdings  Gartner

Excellent diversification

The 3 months correlation between Generac and Gartner is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Generac Holdings and Gartner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gartner and Generac Holdings 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 Generac Holdings are associated (or correlated) with Gartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gartner has no effect on the direction of Generac Holdings i.e., Generac Holdings and Gartner go up and down completely randomly.

Pair Corralation between Generac Holdings and Gartner

Given the investment horizon of 90 days Generac Holdings is expected to generate 0.84 times more return on investment than Gartner. However, Generac Holdings is 1.19 times less risky than Gartner. It trades about 0.12 of its potential returns per unit of risk. Gartner is currently generating about -0.13 per unit of risk. If you would invest  15,025  in Generac Holdings on July 21, 2025 and sell it today you would earn a total of  4,024  from holding Generac Holdings or generate 26.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Generac Holdings  vs.  Gartner

Generac Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Generac Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Generac Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Gartner

Risk-Adjusted Performance

Weakest

Over the last 90 days Gartner has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Generac Holdings and Gartner

The main advantage of trading using opposite Generac Holdings and Gartner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generac Holdings position performs unexpectedly, Gartner 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 Gartner will offset losses from the drop in Gartner's long position.

The idea behind Generac Holdings and Gartner pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.