Correlation Between Genuine Parts and CSW Industrials,

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

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

Diversification Opportunities for Genuine Parts and CSW Industrials,

-0.42

Correlation Coefficient

Genuine Parts  CSW Industrials,

Very good diversification

The 3 months correlation between Genuine and CSW is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Genuine Parts Co and CSW Industrials, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSW Industrials, and Genuine Parts 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 Genuine Parts Co are associated (or correlated) with CSW Industrials,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSW Industrials, has no effect on the direction of Genuine Parts i.e., Genuine Parts and CSW Industrials, go up and down completely randomly.

Pair Corralation between Genuine Parts and CSW Industrials,

Considering the 90-day investment horizon Genuine Parts Co is expected to generate 0.66 times more return on investment than CSW Industrials,. However, Genuine Parts Co is 1.51 times less risky than CSW Industrials,. It trades about 0.09 of its potential returns per unit of risk. CSW Industrials, is currently generating about -0.13 per unit of risk. If you would invest  12,804  in Genuine Parts Co on May 17, 2025 and sell it today you would earn a total of  973.00  from holding Genuine Parts Co or generate 7.6% return on investment over 90 days.

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

Genuine Parts Co  vs.  CSW Industrials,

Genuine Parts

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Genuine Parts Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, Genuine Parts may actually be approaching a critical reversion point that can send shares even higher in September 2025.

CSW Industrials,

Risk-Adjusted Performance

Weakest

Over the last 90 days CSW Industrials, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Genuine Parts and CSW Industrials,

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

The idea behind Genuine Parts Co and CSW Industrials, 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.