Correlation Between Connexus Corp and MSA Safety
Can any of the company-specific risk be diversified away by investing in both Connexus Corp and MSA Safety 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 Connexus Corp and MSA Safety into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Connexus Corp and MSA Safety, you can compare the effects of market volatilities on Connexus Corp and MSA Safety 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 Connexus Corp with a short position of MSA Safety. Check out your portfolio center. Please also check ongoing floating volatility patterns of Connexus Corp and MSA Safety.
Diversification Opportunities for Connexus Corp and MSA Safety
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Connexus and MSA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Connexus Corp and MSA Safety in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSA Safety and Connexus Corp 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 Connexus Corp are associated (or correlated) with MSA Safety. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSA Safety has no effect on the direction of Connexus Corp i.e., Connexus Corp and MSA Safety go up and down completely randomly.
Pair Corralation between Connexus Corp and MSA Safety
If you would invest 16,746 in MSA Safety on September 4, 2024 and sell it today you would earn a total of 688.00 from holding MSA Safety or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Connexus Corp vs. MSA Safety
Performance |
| Timeline |
| Connexus Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MSA Safety |
Connexus Corp and MSA Safety Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Connexus Corp and MSA Safety
The main advantage of trading using opposite Connexus Corp and MSA Safety positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Connexus Corp position performs unexpectedly, MSA Safety 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 MSA Safety will offset losses from the drop in MSA Safety's long position.| Connexus Corp vs. Hooker Furniture | Connexus Corp vs. MSA Safety | Connexus Corp vs. China Teletech Holding | Connexus Corp vs. United Fire Group |
| MSA Safety vs. Allegion PLC | MSA Safety vs. Resideo Technologies | MSA Safety vs. NL Industries | MSA Safety vs. Brady |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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