Correlation Between CIRCOR International and CSW Industrials
Can any of the company-specific risk be diversified away by investing in both CIRCOR International and CSW Industrials 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 CSW Industrials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIRCOR International and CSW Industrials, you can compare the effects of market volatilities on CIRCOR International and CSW Industrials 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 CSW Industrials. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIRCOR International and CSW Industrials.
Diversification Opportunities for CIRCOR International and CSW Industrials
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIRCOR and CSW is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding CIRCOR International and CSW Industrials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSW Industrials 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 CSW Industrials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSW Industrials has no effect on the direction of CIRCOR International i.e., CIRCOR International and CSW Industrials go up and down completely randomly.
Pair Corralation between CIRCOR International and CSW Industrials
If you would invest 38,119 in CSW Industrials on August 24, 2024 and sell it today you would earn a total of 3,447 from holding CSW Industrials or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
CIRCOR International vs. CSW Industrials
Performance |
| Timeline |
| CIRCOR International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CSW Industrials |
CIRCOR International and CSW Industrials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIRCOR International and CSW Industrials
The main advantage of trading using opposite CIRCOR International and CSW Industrials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIRCOR International position performs unexpectedly, CSW Industrials 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 CSW Industrials will offset losses from the drop in CSW Industrials' long position.| CIRCOR International vs. Helios Technologies | CIRCOR International vs. Enpro Industries | CIRCOR International vs. Omega Flex | CIRCOR International vs. Luxfer Holdings PLC |
| CSW Industrials vs. Enerpac Tool Group | CSW Industrials vs. Luxfer Holdings PLC | CSW Industrials vs. John Bean Technologies | CSW Industrials vs. ITT Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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