Correlation Between Crane and Natures Miracle
Can any of the company-specific risk be diversified away by investing in both Crane and Natures Miracle 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 Natures Miracle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crane Company and Natures Miracle Holding, you can compare the effects of market volatilities on Crane and Natures Miracle 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 Natures Miracle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crane and Natures Miracle.
Diversification Opportunities for Crane and Natures Miracle
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Crane and Natures is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Crane Company and Natures Miracle Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natures Miracle Holding 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 Natures Miracle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natures Miracle Holding has no effect on the direction of Crane i.e., Crane and Natures Miracle go up and down completely randomly.
Pair Corralation between Crane and Natures Miracle
Allowing for the 90-day total investment horizon Crane Company is expected to generate 0.09 times more return on investment than Natures Miracle. However, Crane Company is 10.8 times less risky than Natures Miracle. It trades about 0.49 of its potential returns per unit of risk. Natures Miracle Holding is currently generating about -0.04 per unit of risk. If you would invest 14,906 in Crane Company on August 26, 2024 and sell it today you would earn a total of 3,530 from holding Crane Company or generate 23.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crane Company vs. Natures Miracle Holding
Performance |
| Timeline |
| Crane Company |
| Natures Miracle Holding |
Crane and Natures Miracle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crane and Natures Miracle
The main advantage of trading using opposite Crane and Natures Miracle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crane position performs unexpectedly, Natures Miracle 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 Natures Miracle will offset losses from the drop in Natures Miracle's long position.| Crane vs. Aquagold International | Crane vs. Morningstar Unconstrained Allocation | Crane vs. High Yield Municipal Fund | Crane vs. Thrivent High Yield |
| Natures Miracle vs. Barnes Group | Natures Miracle vs. Babcock Wilcox Enterprises | Natures Miracle vs. Crane Company | Natures Miracle 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |