Correlation Between CECO Environmental and Viskase Companies
Can any of the company-specific risk be diversified away by investing in both CECO Environmental and Viskase Companies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CECO Environmental and Viskase Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CECO Environmental Corp and Viskase Companies, you can compare the effects of market volatilities on CECO Environmental and Viskase Companies 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 Viskase Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and Viskase Companies.
Diversification Opportunities for CECO Environmental and Viskase Companies
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between CECO and Viskase is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and Viskase Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viskase Companies 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 Viskase Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viskase Companies has no effect on the direction of CECO Environmental i.e., CECO Environmental and Viskase Companies go up and down completely randomly.
Pair Corralation between CECO Environmental and Viskase Companies
If you would invest 1,306 in CECO Environmental Corp on August 31, 2024 and sell it today you would earn a total of 1,899 from holding CECO Environmental Corp or generate 145.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
CECO Environmental Corp vs. Viskase Companies
Performance |
| Timeline |
| CECO Environmental Corp |
| Viskase Companies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CECO Environmental and Viskase Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and Viskase Companies
The main advantage of trading using opposite CECO Environmental and Viskase Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, Viskase Companies 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 Viskase Companies will offset losses from the drop in Viskase Companies' 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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