Correlation Between CECO Environmental and JABHOL
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By analyzing existing cross correlation between CECO Environmental Corp and JABHOL 22 23 NOV 30, you can compare the effects of market volatilities on CECO Environmental and JABHOL 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 JABHOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and JABHOL.
Diversification Opportunities for CECO Environmental and JABHOL
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CECO and JABHOL is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and JABHOL 22 23 NOV 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JABHOL 22 23 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 JABHOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JABHOL 22 23 has no effect on the direction of CECO Environmental i.e., CECO Environmental and JABHOL go up and down completely randomly.
Pair Corralation between CECO Environmental and JABHOL
Given the investment horizon of 90 days CECO Environmental Corp is expected to generate 0.56 times more return on investment than JABHOL. However, CECO Environmental Corp is 1.78 times less risky than JABHOL. It trades about 0.66 of its potential returns per unit of risk. JABHOL 22 23 NOV 30 is currently generating about -0.32 per unit of risk. If you would invest 2,561 in CECO Environmental Corp on September 12, 2024 and sell it today you would earn a total of 891.00 from holding CECO Environmental Corp or generate 34.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 27.27% |
| Values | Daily Returns |
CECO Environmental Corp vs. JABHOL 22 23 NOV 30
Performance |
| Timeline |
| CECO Environmental Corp |
| JABHOL 22 23 |
CECO Environmental and JABHOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and JABHOL
The main advantage of trading using opposite CECO Environmental and JABHOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, JABHOL 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 JABHOL will offset losses from the drop in JABHOL's long position.| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. Energy Recovery |
| JABHOL vs. Parker Hannifin | JABHOL vs. Brenmiller Energy Ltd | JABHOL vs. Hurco Companies | JABHOL vs. CECO Environmental Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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