Correlation Between CECO Environmental and NISOURCE
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By analyzing existing cross correlation between CECO Environmental Corp and NISOURCE FIN P, you can compare the effects of market volatilities on CECO Environmental and NISOURCE 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 NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and NISOURCE.
Diversification Opportunities for CECO Environmental and NISOURCE
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CECO and NISOURCE is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and NISOURCE FIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE FIN P 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 NISOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISOURCE FIN P has no effect on the direction of CECO Environmental i.e., CECO Environmental and NISOURCE go up and down completely randomly.
Pair Corralation between CECO Environmental and NISOURCE
Given the investment horizon of 90 days CECO Environmental is expected to generate 44.76 times less return on investment than NISOURCE. But when comparing it to its historical volatility, CECO Environmental Corp is 37.05 times less risky than NISOURCE. It trades about 0.09 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7,879 in NISOURCE FIN P on September 12, 2024 and sell it today you would earn a total of 179.00 from holding NISOURCE FIN P or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 61.82% |
| Values | Daily Returns |
CECO Environmental Corp vs. NISOURCE FIN P
Performance |
| Timeline |
| CECO Environmental Corp |
| NISOURCE FIN P |
CECO Environmental and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and NISOURCE
The main advantage of trading using opposite CECO Environmental and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, NISOURCE 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 NISOURCE will offset losses from the drop in NISOURCE's long position.| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. Energy Recovery |
| NISOURCE vs. Century Aluminum | NISOURCE vs. CECO Environmental Corp | NISOURCE vs. Amgen Inc | NISOURCE vs. Tianjin Capital Environmental |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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