Correlation Between Capstone Green and Nordson
Can any of the company-specific risk be diversified away by investing in both Capstone Green and Nordson 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 Capstone Green and Nordson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capstone Green Energy and Nordson, you can compare the effects of market volatilities on Capstone Green and Nordson 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 Capstone Green with a short position of Nordson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Green and Nordson.
Diversification Opportunities for Capstone Green and Nordson
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capstone and Nordson is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Green Energy and Nordson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordson and Capstone Green 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 Capstone Green Energy are associated (or correlated) with Nordson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordson has no effect on the direction of Capstone Green i.e., Capstone Green and Nordson go up and down completely randomly.
Pair Corralation between Capstone Green and Nordson
If you would invest 25,088 in Nordson on August 31, 2024 and sell it today you would earn a total of 848.00 from holding Nordson or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Capstone Green Energy vs. Nordson
Performance |
| Timeline |
| Capstone Green Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nordson |
Capstone Green and Nordson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capstone Green and Nordson
The main advantage of trading using opposite Capstone Green and Nordson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Green position performs unexpectedly, Nordson 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 Nordson will offset losses from the drop in Nordson's long position.| Capstone Green vs. Nordson | Capstone Green vs. CVD Equipment | Capstone Green vs. Barnes Group | Capstone Green vs. Ametek Inc |
| Nordson vs. Illinois Tool Works | Nordson vs. Pentair PLC | Nordson vs. Parker Hannifin | Nordson vs. Emerson Electric |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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