Correlation Between CEA Industries and Manitex International
Can any of the company-specific risk be diversified away by investing in both CEA Industries and Manitex International 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 Manitex International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEA Industries Warrant and Manitex International, you can compare the effects of market volatilities on CEA Industries and Manitex International 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 Manitex International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEA Industries and Manitex International.
Diversification Opportunities for CEA Industries and Manitex International
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CEA and Manitex is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CEA Industries Warrant and Manitex International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitex International 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 Warrant are associated (or correlated) with Manitex International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitex International has no effect on the direction of CEA Industries i.e., CEA Industries and Manitex International go up and down completely randomly.
Pair Corralation between CEA Industries and Manitex International
Assuming the 90 days horizon CEA Industries Warrant is expected to generate 238.74 times more return on investment than Manitex International. However, CEA Industries is 238.74 times more volatile than Manitex International. It trades about 0.27 of its potential returns per unit of risk. Manitex International is currently generating about 0.16 per unit of risk. If you would invest 0.87 in CEA Industries Warrant on September 12, 2024 and sell it today you would earn a total of 0.69 from holding CEA Industries Warrant or generate 79.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
CEA Industries Warrant vs. Manitex International
Performance |
| Timeline |
| CEA Industries Warrant |
| Manitex International |
CEA Industries and Manitex International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEA Industries and Manitex International
The main advantage of trading using opposite CEA Industries and Manitex International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEA Industries position performs unexpectedly, Manitex International 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 Manitex International will offset losses from the drop in Manitex International's long position.| CEA Industries vs. CEA Industries | CEA Industries vs. Thayer Ventures Acquisition | CEA Industries vs. Iveda Solutions Warrant |
| Manitex International vs. Astec Industries | Manitex International vs. Hyster Yale Materials Handling | Manitex International vs. Shyft Group | Manitex International vs. Rev Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |