Correlation Between CECO Environmental and Wicket Gaming
Can any of the company-specific risk be diversified away by investing in both CECO Environmental and Wicket Gaming 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 Wicket Gaming 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 Wicket Gaming AB, you can compare the effects of market volatilities on CECO Environmental and Wicket Gaming 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 Wicket Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and Wicket Gaming.
Diversification Opportunities for CECO Environmental and Wicket Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CECO and Wicket is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and Wicket Gaming AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wicket Gaming AB 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 Wicket Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wicket Gaming AB has no effect on the direction of CECO Environmental i.e., CECO Environmental and Wicket Gaming go up and down completely randomly.
Pair Corralation between CECO Environmental and Wicket Gaming
Given the investment horizon of 90 days CECO Environmental Corp is expected to generate 0.8 times more return on investment than Wicket Gaming. However, CECO Environmental Corp is 1.24 times less risky than Wicket Gaming. It trades about 0.08 of its potential returns per unit of risk. Wicket Gaming AB is currently generating about -0.05 per unit of risk. If you would invest 1,192 in CECO Environmental Corp on September 2, 2024 and sell it today you would earn a total of 2,013 from holding CECO Environmental Corp or generate 168.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.98% |
| Values | Daily Returns |
CECO Environmental Corp vs. Wicket Gaming AB
Performance |
| Timeline |
| CECO Environmental Corp |
| Wicket Gaming AB |
CECO Environmental and Wicket Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and Wicket Gaming
The main advantage of trading using opposite CECO Environmental and Wicket Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, Wicket Gaming 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 Wicket Gaming will offset losses from the drop in Wicket Gaming's long position.| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. Energy Recovery |
| Wicket Gaming vs. CD Projekt SA | Wicket Gaming vs. Playtika Holding Corp | Wicket Gaming vs. Square Enix Holdings | Wicket Gaming vs. Nexon Co Ltd |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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