Correlation Between CIRCOR International and Standex International
Can any of the company-specific risk be diversified away by investing in both CIRCOR International and Standex International 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 Standex International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIRCOR International and Standex International, you can compare the effects of market volatilities on CIRCOR International and Standex International 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 Standex International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIRCOR International and Standex International.
Diversification Opportunities for CIRCOR International and Standex International
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIRCOR and Standex is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding CIRCOR International and Standex International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standex International 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 Standex International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standex International has no effect on the direction of CIRCOR International i.e., CIRCOR International and Standex International go up and down completely randomly.
Pair Corralation between CIRCOR International and Standex International
If you would invest 17,909 in Standex International on August 27, 2024 and sell it today you would earn a total of 2,553 from holding Standex International or generate 14.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
CIRCOR International vs. Standex International
Performance |
| Timeline |
| CIRCOR International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Standex International |
CIRCOR International and Standex International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIRCOR International and Standex International
The main advantage of trading using opposite CIRCOR International and Standex International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIRCOR International position performs unexpectedly, Standex International 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 Standex International will offset losses from the drop in Standex International's long position.| CIRCOR International vs. Helios Technologies | CIRCOR International vs. Enpro Industries | CIRCOR International vs. Omega Flex | CIRCOR International vs. Luxfer Holdings PLC |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |