Correlation Between Columbus McKinnon and Shyft
Can any of the company-specific risk be diversified away by investing in both Columbus McKinnon and Shyft 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 Columbus McKinnon and Shyft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbus McKinnon and Shyft Group, you can compare the effects of market volatilities on Columbus McKinnon and Shyft 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 Columbus McKinnon with a short position of Shyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbus McKinnon and Shyft.
Diversification Opportunities for Columbus McKinnon and Shyft
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Columbus and Shyft is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Columbus McKinnon and Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft Group and Columbus McKinnon 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 Columbus McKinnon are associated (or correlated) with Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of Columbus McKinnon i.e., Columbus McKinnon and Shyft go up and down completely randomly.
Pair Corralation between Columbus McKinnon and Shyft
Given the investment horizon of 90 days Columbus McKinnon is expected to generate 2.65 times less return on investment than Shyft. But when comparing it to its historical volatility, Columbus McKinnon is 1.69 times less risky than Shyft. It trades about 0.03 of its potential returns per unit of risk. Shyft Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,096 in Shyft Group on August 24, 2024 and sell it today you would earn a total of 238.00 from holding Shyft Group or generate 21.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbus McKinnon vs. Shyft Group
Performance |
| Timeline |
| Columbus McKinnon |
| Shyft Group |
Columbus McKinnon and Shyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbus McKinnon and Shyft
The main advantage of trading using opposite Columbus McKinnon and Shyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbus McKinnon position performs unexpectedly, Shyft 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 Shyft will offset losses from the drop in Shyft's long position.| Columbus McKinnon vs. Lindsay | Columbus McKinnon vs. Astec Industries | Columbus McKinnon vs. Shyft Group | Columbus McKinnon vs. AGCO Corporation |
| Shyft vs. Astec Industries | Shyft vs. Hyster Yale Materials Handling | Shyft vs. Manitex International | Shyft vs. Rev Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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