Correlation Between CECO Environmental and MORGAN
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By analyzing existing cross correlation between CECO Environmental Corp and MORGAN STANLEY 395, you can compare the effects of market volatilities on CECO Environmental and MORGAN 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 MORGAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and MORGAN.
Diversification Opportunities for CECO Environmental and MORGAN
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CECO and MORGAN is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and MORGAN STANLEY 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MORGAN STANLEY 5 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 MORGAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MORGAN STANLEY 5 has no effect on the direction of CECO Environmental i.e., CECO Environmental and MORGAN go up and down completely randomly.
Pair Corralation between CECO Environmental and MORGAN
Given the investment horizon of 90 days CECO Environmental Corp is expected to generate 6.0 times more return on investment than MORGAN. However, CECO Environmental is 6.0 times more volatile than MORGAN STANLEY 395. It trades about 0.08 of its potential returns per unit of risk. MORGAN STANLEY 395 is currently generating about 0.01 per unit of risk. If you would invest 1,172 in CECO Environmental Corp on September 13, 2024 and sell it today you would earn a total of 2,100 from holding CECO Environmental Corp or generate 179.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
CECO Environmental Corp vs. MORGAN STANLEY 395
Performance |
| Timeline |
| CECO Environmental Corp |
| MORGAN STANLEY 5 |
CECO Environmental and MORGAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and MORGAN
The main advantage of trading using opposite CECO Environmental and MORGAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, MORGAN 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 MORGAN will offset losses from the drop in MORGAN's long position.| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. Energy Recovery |
| MORGAN vs. Grocery Outlet Holding | MORGAN vs. U Haul Holding | MORGAN vs. First Ship Lease | MORGAN vs. Fortress Transp Infra |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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