Correlation Between CECO Environmental and 90331HPL1
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By analyzing existing cross correlation between CECO Environmental Corp and US BANK NATIONAL, you can compare the effects of market volatilities on CECO Environmental and 90331HPL1 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 90331HPL1. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and 90331HPL1.
Diversification Opportunities for CECO Environmental and 90331HPL1
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CECO and 90331HPL1 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and US BANK NATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US BANK NATIONAL 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 90331HPL1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US BANK NATIONAL has no effect on the direction of CECO Environmental i.e., CECO Environmental and 90331HPL1 go up and down completely randomly.
Pair Corralation between CECO Environmental and 90331HPL1
Given the investment horizon of 90 days CECO Environmental is expected to generate 35.42 times less return on investment than 90331HPL1. But when comparing it to its historical volatility, CECO Environmental Corp is 31.7 times less risky than 90331HPL1. It trades about 0.08 of its potential returns per unit of risk. US BANK NATIONAL is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,512 in US BANK NATIONAL on August 25, 2024 and sell it today you would earn a total of 84.00 from holding US BANK NATIONAL or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 62.98% |
| Values | Daily Returns |
CECO Environmental Corp vs. US BANK NATIONAL
Performance |
| Timeline |
| CECO Environmental Corp |
| US BANK NATIONAL |
CECO Environmental and 90331HPL1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and 90331HPL1
The main advantage of trading using opposite CECO Environmental and 90331HPL1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, 90331HPL1 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 90331HPL1 will offset losses from the drop in 90331HPL1's long position.| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. 374Water Common Stock |
| 90331HPL1 vs. CECO Environmental Corp | 90331HPL1 vs. Park Hotels Resorts | 90331HPL1 vs. Algoma Steel Group | 90331HPL1 vs. Insteel Industries |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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