Correlation Between CIRCOR International and Crane
Can any of the company-specific risk be diversified away by investing in both CIRCOR International and Crane 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 CIRCOR International and Crane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIRCOR International and Crane Company, you can compare the effects of market volatilities on CIRCOR International and Crane 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 CIRCOR International with a short position of Crane. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIRCOR International and Crane.
Diversification Opportunities for CIRCOR International and Crane
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CIRCOR and Crane is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding CIRCOR International and Crane Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crane Company and CIRCOR International 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 CIRCOR International are associated (or correlated) with Crane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crane Company has no effect on the direction of CIRCOR International i.e., CIRCOR International and Crane go up and down completely randomly.
Pair Corralation between CIRCOR International and Crane
If you would invest 15,642 in Crane Company on October 26, 2024 and sell it today you would earn a total of 545.00 from holding Crane Company or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
CIRCOR International vs. Crane Company
Performance |
| Timeline |
| CIRCOR International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Crane Company |
CIRCOR International and Crane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIRCOR International and Crane
The main advantage of trading using opposite CIRCOR International and Crane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIRCOR International position performs unexpectedly, Crane 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 Crane will offset losses from the drop in Crane's long position.| CIRCOR International vs. Helios Technologies | CIRCOR International vs. Enpro Industries | CIRCOR International vs. Omega Flex | CIRCOR International vs. Luxfer Holdings PLC |
| Crane vs. Standex International | Crane vs. Donaldson | Crane vs. CSW Industrials | Crane vs. Franklin Electric Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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