Correlation Between Concrete Pumping and IES Holdings
Can any of the company-specific risk be diversified away by investing in both Concrete Pumping and IES Holdings 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 Concrete Pumping and IES Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concrete Pumping Holdings and IES Holdings, you can compare the effects of market volatilities on Concrete Pumping and IES Holdings 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 Concrete Pumping with a short position of IES Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concrete Pumping and IES Holdings.
Diversification Opportunities for Concrete Pumping and IES Holdings
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Concrete and IES is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Concrete Pumping Holdings and IES Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IES Holdings and Concrete Pumping 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 Concrete Pumping Holdings are associated (or correlated) with IES Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IES Holdings has no effect on the direction of Concrete Pumping i.e., Concrete Pumping and IES Holdings go up and down completely randomly.
Pair Corralation between Concrete Pumping and IES Holdings
Assuming the 90 days horizon Concrete Pumping Holdings is expected to generate 7.36 times more return on investment than IES Holdings. However, Concrete Pumping is 7.36 times more volatile than IES Holdings. It trades about 0.05 of its potential returns per unit of risk. IES Holdings is currently generating about 0.16 per unit of risk. If you would invest 6.00 in Concrete Pumping Holdings on August 31, 2024 and sell it today you would lose (3.10) from holding Concrete Pumping Holdings or give up 51.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.29% |
| Values | Daily Returns |
Concrete Pumping Holdings vs. IES Holdings
Performance |
| Timeline |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IES Holdings |
Concrete Pumping and IES Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concrete Pumping and IES Holdings
The main advantage of trading using opposite Concrete Pumping and IES Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concrete Pumping position performs unexpectedly, IES Holdings 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 IES Holdings will offset losses from the drop in IES Holdings' long position.| Concrete Pumping vs. Diamond Estates Wines | Concrete Pumping vs. CF Industries Holdings | Concrete Pumping vs. Hawkins | Concrete Pumping vs. Hudson Technologies |
| IES Holdings vs. EMCOR Group | IES Holdings vs. Comfort Systems USA | IES Holdings vs. Primoris Services | IES Holdings vs. Granite Construction Incorporated |
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 Stocks Directory module to find actively traded stocks across global markets.
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