Correlation Between CECO Environmental and ORACLE
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By analyzing existing cross correlation between CECO Environmental Corp and ORACLE PORATION, you can compare the effects of market volatilities on CECO Environmental and ORACLE 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 ORACLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and ORACLE.
Diversification Opportunities for CECO Environmental and ORACLE
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CECO and ORACLE is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and ORACLE PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORACLE PORATION 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 ORACLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORACLE PORATION has no effect on the direction of CECO Environmental i.e., CECO Environmental and ORACLE go up and down completely randomly.
Pair Corralation between CECO Environmental and ORACLE
Given the investment horizon of 90 days CECO Environmental Corp is expected to generate 1.24 times more return on investment than ORACLE. However, CECO Environmental is 1.24 times more volatile than ORACLE PORATION. It trades about 0.48 of its potential returns per unit of risk. ORACLE PORATION is currently generating about -0.17 per unit of risk. If you would invest 2,380 in CECO Environmental Corp on September 1, 2024 and sell it today you would earn a total of 825.00 from holding CECO Environmental Corp or generate 34.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CECO Environmental Corp vs. ORACLE PORATION
Performance |
| Timeline |
| CECO Environmental Corp |
| ORACLE PORATION |
CECO Environmental and ORACLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and ORACLE
The main advantage of trading using opposite CECO Environmental and ORACLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, ORACLE 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 ORACLE will offset losses from the drop in ORACLE's long position.| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. Energy Recovery |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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