Correlation Between Byrna Technologies and Cadre Holdings
Can any of the company-specific risk be diversified away by investing in both Byrna Technologies and Cadre 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 Byrna Technologies and Cadre Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byrna Technologies and Cadre Holdings, you can compare the effects of market volatilities on Byrna Technologies and Cadre 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 Byrna Technologies with a short position of Cadre Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byrna Technologies and Cadre Holdings.
Diversification Opportunities for Byrna Technologies and Cadre Holdings
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Byrna and Cadre is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Byrna Technologies and Cadre Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadre Holdings and Byrna Technologies 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 Byrna Technologies are associated (or correlated) with Cadre Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadre Holdings has no effect on the direction of Byrna Technologies i.e., Byrna Technologies and Cadre Holdings go up and down completely randomly.
Pair Corralation between Byrna Technologies and Cadre Holdings
Given the investment horizon of 90 days Byrna Technologies is expected to under-perform the Cadre Holdings. In addition to that, Byrna Technologies is 1.97 times more volatile than Cadre Holdings. It trades about -0.09 of its total potential returns per unit of risk. Cadre Holdings is currently generating about 0.38 per unit of volatility. If you would invest 3,250 in Cadre Holdings on November 4, 2024 and sell it today you would earn a total of 605.00 from holding Cadre Holdings or generate 18.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byrna Technologies vs. Cadre Holdings
Performance |
| Timeline |
| Byrna Technologies |
| Cadre Holdings |
Byrna Technologies and Cadre Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byrna Technologies and Cadre Holdings
The main advantage of trading using opposite Byrna Technologies and Cadre Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byrna Technologies position performs unexpectedly, Cadre 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 Cadre Holdings will offset losses from the drop in Cadre Holdings' long position.| Byrna Technologies vs. Ducommun Incorporated | Byrna Technologies vs. Park Electrochemical | Byrna Technologies vs. National Presto Industries | Byrna Technologies vs. Astronics |
| Cadre Holdings vs. European Wax Center | Cadre Holdings vs. Enfusion | Cadre Holdings vs. CiT Inc | Cadre Holdings vs. Core Main |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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