Correlation Between CECO Environmental and Spectaire Holdings
Can any of the company-specific risk be diversified away by investing in both CECO Environmental and Spectaire 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 CECO Environmental and Spectaire Holdings 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 Spectaire Holdings, you can compare the effects of market volatilities on CECO Environmental and Spectaire 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 CECO Environmental with a short position of Spectaire Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and Spectaire Holdings.
Diversification Opportunities for CECO Environmental and Spectaire Holdings
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CECO and Spectaire is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and Spectaire Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectaire Holdings 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 Spectaire Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectaire Holdings has no effect on the direction of CECO Environmental i.e., CECO Environmental and Spectaire Holdings go up and down completely randomly.
Pair Corralation between CECO Environmental and Spectaire Holdings
If you would invest 2,347 in CECO Environmental Corp on September 2, 2024 and sell it today you would earn a total of 858.00 from holding CECO Environmental Corp or generate 36.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
CECO Environmental Corp vs. Spectaire Holdings
Performance |
| Timeline |
| CECO Environmental Corp |
| Spectaire Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CECO Environmental and Spectaire Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and Spectaire Holdings
The main advantage of trading using opposite CECO Environmental and Spectaire Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, Spectaire 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 Spectaire Holdings will offset losses from the drop in Spectaire Holdings' long position.| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. Energy Recovery |
| Spectaire Holdings vs. Globalfoundries | Spectaire Holdings vs. Entegris | Spectaire Holdings vs. RCS MediaGroup SpA | Spectaire Holdings vs. Vishay Intertechnology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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