Correlation Between CECO Environmental and Global Payment
Can any of the company-specific risk be diversified away by investing in both CECO Environmental and Global Payment 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 CECO Environmental and Global Payment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CECO Environmental Corp and Global Payment Technologies, you can compare the effects of market volatilities on CECO Environmental and Global Payment 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 CECO Environmental with a short position of Global Payment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and Global Payment.
Diversification Opportunities for CECO Environmental and Global Payment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CECO and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and Global Payment Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payment Techn and CECO Environmental 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 CECO Environmental Corp are associated (or correlated) with Global Payment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payment Techn has no effect on the direction of CECO Environmental i.e., CECO Environmental and Global Payment go up and down completely randomly.
Pair Corralation between CECO Environmental and Global Payment
If you would invest 1,991 in CECO Environmental Corp on September 4, 2024 and sell it today you would earn a total of 1,236 from holding CECO Environmental Corp or generate 62.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
CECO Environmental Corp vs. Global Payment Technologies
Performance |
| Timeline |
| CECO Environmental Corp |
| Global Payment Techn |
CECO Environmental and Global Payment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and Global Payment
The main advantage of trading using opposite CECO Environmental and Global Payment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, Global Payment 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 Global Payment will offset losses from the drop in Global Payment's long position.| CECO Environmental vs. Federal Signal | CECO Environmental vs. CO2 Solutions | CECO Environmental vs. Aquagold International | CECO Environmental vs. Thrivent High Yield |
| Global Payment vs. Eline Entertainment Group | Global Payment vs. Green Leaf Innovations | Global Payment vs. Plandai Biotech | Global Payment vs. All American Gld |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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