Correlation Between CECO Environmental and Sandstorm Gold
Can any of the company-specific risk be diversified away by investing in both CECO Environmental and Sandstorm Gold 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 Sandstorm Gold 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 Sandstorm Gold Ltd, you can compare the effects of market volatilities on CECO Environmental and Sandstorm Gold 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 Sandstorm Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and Sandstorm Gold.
Diversification Opportunities for CECO Environmental and Sandstorm Gold
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CECO and Sandstorm is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and Sandstorm Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandstorm Gold 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 Sandstorm Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandstorm Gold has no effect on the direction of CECO Environmental i.e., CECO Environmental and Sandstorm Gold go up and down completely randomly.
Pair Corralation between CECO Environmental and Sandstorm Gold
Given the investment horizon of 90 days CECO Environmental Corp is expected to generate 1.42 times more return on investment than Sandstorm Gold. However, CECO Environmental is 1.42 times more volatile than Sandstorm Gold Ltd. It trades about 0.01 of its potential returns per unit of risk. Sandstorm Gold Ltd is currently generating about 0.01 per unit of risk. If you would invest 3,020 in CECO Environmental Corp on October 21, 2024 and sell it today you would lose (60.00) from holding CECO Environmental Corp or give up 1.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CECO Environmental Corp vs. Sandstorm Gold Ltd
Performance |
| Timeline |
| CECO Environmental Corp |
| Sandstorm Gold |
CECO Environmental and Sandstorm Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and Sandstorm Gold
The main advantage of trading using opposite CECO Environmental and Sandstorm Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, Sandstorm Gold 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 Sandstorm Gold will offset losses from the drop in Sandstorm Gold's long position.| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. Energy Recovery |
| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Royal Gold | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge Gold |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |