Correlation Between Cardano and CRAWFORD +
Can any of the company-specific risk be diversified away by investing in both Cardano and CRAWFORD + 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 Cardano and CRAWFORD + into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardano and CRAWFORD A NV, you can compare the effects of market volatilities on Cardano and CRAWFORD + 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 Cardano with a short position of CRAWFORD +. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardano and CRAWFORD +.
Diversification Opportunities for Cardano and CRAWFORD +
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cardano and CRAWFORD is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cardano and CRAWFORD A NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRAWFORD A NV and Cardano 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 Cardano are associated (or correlated) with CRAWFORD +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRAWFORD A NV has no effect on the direction of Cardano i.e., Cardano and CRAWFORD + go up and down completely randomly.
Pair Corralation between Cardano and CRAWFORD +
Assuming the 90 days trading horizon Cardano is expected to under-perform the CRAWFORD +. In addition to that, Cardano is 2.45 times more volatile than CRAWFORD A NV. It trades about -0.09 of its total potential returns per unit of risk. CRAWFORD A NV is currently generating about -0.01 per unit of volatility. If you would invest 1,050 in CRAWFORD A NV on October 11, 2024 and sell it today you would lose (10.00) from holding CRAWFORD A NV or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Cardano vs. CRAWFORD A NV
Performance |
| Timeline |
| Cardano |
| CRAWFORD A NV |
Cardano and CRAWFORD + Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardano and CRAWFORD +
The main advantage of trading using opposite Cardano and CRAWFORD + positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardano position performs unexpectedly, CRAWFORD + 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 CRAWFORD + will offset losses from the drop in CRAWFORD +'s long position.The idea behind Cardano and CRAWFORD A NV 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.| CRAWFORD + vs. Forsys Metals Corp | CRAWFORD + vs. Aluminum of | CRAWFORD + vs. GALENA MINING LTD | CRAWFORD + vs. SERI INDUSTRIAL EO |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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