Correlation Between CEA Industries and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both CEA Industries and Hyster Yale 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 CEA Industries and Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEA Industries and Hyster Yale Materials Handling, you can compare the effects of market volatilities on CEA Industries and Hyster Yale 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 CEA Industries with a short position of Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEA Industries and Hyster Yale.
Diversification Opportunities for CEA Industries and Hyster Yale
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CEA and Hyster is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding CEA Industries and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials and CEA Industries 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 CEA Industries are associated (or correlated) with Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of CEA Industries i.e., CEA Industries and Hyster Yale go up and down completely randomly.
Pair Corralation between CEA Industries and Hyster Yale
Given the investment horizon of 90 days CEA Industries is expected to under-perform the Hyster Yale. In addition to that, CEA Industries is 1.24 times more volatile than Hyster Yale Materials Handling. It trades about -0.02 of its total potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.06 per unit of volatility. If you would invest 2,876 in Hyster Yale Materials Handling on August 27, 2024 and sell it today you would earn a total of 2,803 from holding Hyster Yale Materials Handling or generate 97.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEA Industries vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| CEA Industries |
| Hyster Yale Materials |
CEA Industries and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEA Industries and Hyster Yale
The main advantage of trading using opposite CEA Industries and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEA Industries position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| CEA Industries vs. Rev Group | CEA Industries vs. Caterpillar | CEA Industries vs. Buhler Industries | CEA Industries vs. Austin Engineering Limited |
| Hyster Yale vs. Xos Inc | Hyster Yale vs. Nikola Corp | Hyster Yale vs. Wabash National | Hyster Yale vs. American Premium Water |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |