Correlation Between CECO Environmental and Patterson
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By analyzing existing cross correlation between CECO Environmental Corp and Patterson UTI Energy 515, you can compare the effects of market volatilities on CECO Environmental and Patterson 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 Patterson. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and Patterson.
Diversification Opportunities for CECO Environmental and Patterson
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CECO and Patterson is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and Patterson UTI Energy 515 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patterson UTI 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 Patterson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patterson UTI Energy has no effect on the direction of CECO Environmental i.e., CECO Environmental and Patterson go up and down completely randomly.
Pair Corralation between CECO Environmental and Patterson
Given the investment horizon of 90 days CECO Environmental Corp is expected to generate 6.21 times more return on investment than Patterson. However, CECO Environmental is 6.21 times more volatile than Patterson UTI Energy 515. It trades about 0.09 of its potential returns per unit of risk. Patterson UTI Energy 515 is currently generating about -0.03 per unit of risk. If you would invest 2,820 in CECO Environmental Corp on August 30, 2024 and sell it today you would earn a total of 368.00 from holding CECO Environmental Corp or generate 13.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
CECO Environmental Corp vs. Patterson UTI Energy 515
Performance |
| Timeline |
| CECO Environmental Corp |
| Patterson UTI Energy |
CECO Environmental and Patterson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and Patterson
The main advantage of trading using opposite CECO Environmental and Patterson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, Patterson 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 Patterson will offset losses from the drop in Patterson's long position.| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. CO2 Solutions |
| Patterson vs. Eldorado Gold Corp | Patterson vs. Li Auto | Patterson vs. BRP Inc | Patterson 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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