Correlation Between CECO Environmental and Suncast Solar
Can any of the company-specific risk be diversified away by investing in both CECO Environmental and Suncast Solar 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 Suncast Solar 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 Suncast Solar Energy, you can compare the effects of market volatilities on CECO Environmental and Suncast Solar 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 Suncast Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and Suncast Solar.
Diversification Opportunities for CECO Environmental and Suncast Solar
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CECO and Suncast is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and Suncast Solar Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suncast Solar Energy 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 Suncast Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suncast Solar Energy has no effect on the direction of CECO Environmental i.e., CECO Environmental and Suncast Solar go up and down completely randomly.
Pair Corralation between CECO Environmental and Suncast Solar
If you would invest 2,511 in CECO Environmental Corp on September 13, 2024 and sell it today you would earn a total of 869.50 from holding CECO Environmental Corp or generate 34.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CECO Environmental Corp vs. Suncast Solar Energy
Performance |
| Timeline |
| CECO Environmental Corp |
| Suncast Solar Energy |
CECO Environmental and Suncast Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and Suncast Solar
The main advantage of trading using opposite CECO Environmental and Suncast Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, Suncast Solar 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 Suncast Solar will offset losses from the drop in Suncast Solar's long position.| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. Energy Recovery |
| Suncast Solar vs. Japan Tobacco ADR | Suncast Solar vs. Compania Cervecerias Unidas | Suncast Solar vs. CECO Environmental Corp | Suncast Solar vs. Keurig Dr Pepper |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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