Correlation Between Crane and HUHUTECH International
Can any of the company-specific risk be diversified away by investing in both Crane and HUHUTECH 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 HUHUTECH 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 HUHUTECH International Group, you can compare the effects of market volatilities on Crane and HUHUTECH 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 HUHUTECH International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crane and HUHUTECH International.
Diversification Opportunities for Crane and HUHUTECH International
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Crane and HUHUTECH is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Crane Company and HUHUTECH International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUHUTECH 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 HUHUTECH International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUHUTECH International has no effect on the direction of Crane i.e., Crane and HUHUTECH International go up and down completely randomly.
Pair Corralation between Crane and HUHUTECH International
Allowing for the 90-day total investment horizon Crane Company is expected to generate 0.45 times more return on investment than HUHUTECH International. However, Crane Company is 2.24 times less risky than HUHUTECH International. It trades about 0.14 of its potential returns per unit of risk. HUHUTECH International Group is currently generating about -0.07 per unit of risk. If you would invest 15,588 in Crane Company on October 25, 2024 and sell it today you would earn a total of 599.00 from holding Crane Company or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crane Company vs. HUHUTECH International Group
Performance |
| Timeline |
| Crane Company |
| HUHUTECH International |
Crane and HUHUTECH International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crane and HUHUTECH International
The main advantage of trading using opposite Crane and HUHUTECH International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crane position performs unexpectedly, HUHUTECH 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 HUHUTECH International will offset losses from the drop in HUHUTECH International's long position.| Crane vs. Standex International | Crane vs. Donaldson | Crane vs. CSW Industrials | Crane vs. Franklin Electric Co |
| HUHUTECH International vs. Barnes Group | HUHUTECH International vs. Babcock Wilcox Enterprises | HUHUTECH International vs. Crane Company | HUHUTECH International vs. Hillenbrand |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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