Correlation Between CIRCOR International and Enerpac Tool
Can any of the company-specific risk be diversified away by investing in both CIRCOR International and Enerpac Tool 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 Enerpac Tool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIRCOR International and Enerpac Tool Group, you can compare the effects of market volatilities on CIRCOR International and Enerpac Tool 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 Enerpac Tool. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIRCOR International and Enerpac Tool.
Diversification Opportunities for CIRCOR International and Enerpac Tool
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CIRCOR and Enerpac is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding CIRCOR International and Enerpac Tool Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerpac Tool Group 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 Enerpac Tool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerpac Tool Group has no effect on the direction of CIRCOR International i.e., CIRCOR International and Enerpac Tool go up and down completely randomly.
Pair Corralation between CIRCOR International and Enerpac Tool
If you would invest 4,109 in Enerpac Tool Group on November 5, 2024 and sell it today you would earn a total of 410.00 from holding Enerpac Tool Group or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
CIRCOR International vs. Enerpac Tool Group
Performance |
| Timeline |
| CIRCOR International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enerpac Tool Group |
CIRCOR International and Enerpac Tool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIRCOR International and Enerpac Tool
The main advantage of trading using opposite CIRCOR International and Enerpac Tool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIRCOR International position performs unexpectedly, Enerpac Tool 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 Enerpac Tool will offset losses from the drop in Enerpac Tool's long position.| CIRCOR International vs. Helios Technologies | CIRCOR International vs. Enpro Industries | CIRCOR International vs. Omega Flex | CIRCOR International vs. Luxfer Holdings PLC |
| Enerpac Tool vs. Omega Flex | Enerpac Tool vs. Luxfer Holdings PLC | Enerpac Tool vs. Gorman Rupp | Enerpac Tool vs. CSW Industrials |
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 Stocks Directory module to find actively traded stocks across global markets.
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