Correlation Between CECO Environmental and 92939UAG1
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By analyzing existing cross correlation between CECO Environmental Corp and WEC 22 15 DEC 28, you can compare the effects of market volatilities on CECO Environmental and 92939UAG1 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 92939UAG1. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and 92939UAG1.
Diversification Opportunities for CECO Environmental and 92939UAG1
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CECO and 92939UAG1 is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and WEC 22 15 DEC 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEC 22 15 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 92939UAG1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEC 22 15 has no effect on the direction of CECO Environmental i.e., CECO Environmental and 92939UAG1 go up and down completely randomly.
Pair Corralation between CECO Environmental and 92939UAG1
Given the investment horizon of 90 days CECO Environmental Corp is expected to generate 6.24 times more return on investment than 92939UAG1. However, CECO Environmental is 6.24 times more volatile than WEC 22 15 DEC 28. It trades about 0.08 of its potential returns per unit of risk. WEC 22 15 DEC 28 is currently generating about 0.02 per unit of risk. If you would invest 1,235 in CECO Environmental Corp on September 3, 2024 and sell it today you would earn a total of 1,970 from holding CECO Environmental Corp or generate 159.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.67% |
| Values | Daily Returns |
CECO Environmental Corp vs. WEC 22 15 DEC 28
Performance |
| Timeline |
| CECO Environmental Corp |
| WEC 22 15 |
CECO Environmental and 92939UAG1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and 92939UAG1
The main advantage of trading using opposite CECO Environmental and 92939UAG1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, 92939UAG1 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 92939UAG1 will offset losses from the drop in 92939UAG1's long position.| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. Energy Recovery |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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