Correlation Between Crane and CIRCOR International
Can any of the company-specific risk be diversified away by investing in both Crane and CIRCOR 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 Crane and CIRCOR International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crane Company and CIRCOR International, you can compare the effects of market volatilities on Crane and CIRCOR 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 Crane with a short position of CIRCOR International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crane and CIRCOR International.
Diversification Opportunities for Crane and CIRCOR International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crane and CIRCOR is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Crane Company and CIRCOR International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIRCOR International and Crane 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 Crane Company are associated (or correlated) with CIRCOR International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIRCOR International has no effect on the direction of Crane i.e., Crane and CIRCOR International go up and down completely randomly.
Pair Corralation between Crane and CIRCOR International
If you would invest 15,098 in Crane Company on November 3, 2024 and sell it today you would earn a total of 1,934 from holding Crane Company or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Crane Company vs. CIRCOR International
Performance |
| Timeline |
| Crane Company |
| CIRCOR International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Crane and CIRCOR International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crane and CIRCOR International
The main advantage of trading using opposite Crane and CIRCOR International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crane position performs unexpectedly, CIRCOR 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 CIRCOR International will offset losses from the drop in CIRCOR International's long position.| Crane vs. Standex International | Crane vs. Donaldson | Crane vs. CSW Industrials | Crane vs. Franklin Electric Co |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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