Correlation Between Crane and Nano Nuclear
Can any of the company-specific risk be diversified away by investing in both Crane and Nano Nuclear 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 Nano Nuclear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crane Company and Nano Nuclear Energy, you can compare the effects of market volatilities on Crane and Nano Nuclear 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 Nano Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crane and Nano Nuclear.
Diversification Opportunities for Crane and Nano Nuclear
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Crane and Nano is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Crane Company and Nano Nuclear Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Nuclear Energy 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 Nano Nuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Nuclear Energy has no effect on the direction of Crane i.e., Crane and Nano Nuclear go up and down completely randomly.
Pair Corralation between Crane and Nano Nuclear
Allowing for the 90-day total investment horizon Crane is expected to generate 2.11 times less return on investment than Nano Nuclear. But when comparing it to its historical volatility, Crane Company is 5.44 times less risky than Nano Nuclear. It trades about 0.38 of its potential returns per unit of risk. Nano Nuclear Energy is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,090 in Nano Nuclear Energy on August 30, 2024 and sell it today you would earn a total of 512.00 from holding Nano Nuclear Energy or generate 24.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crane Company vs. Nano Nuclear Energy
Performance |
| Timeline |
| Crane Company |
| Nano Nuclear Energy |
Crane and Nano Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crane and Nano Nuclear
The main advantage of trading using opposite Crane and Nano Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crane position performs unexpectedly, Nano Nuclear 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 Nano Nuclear will offset losses from the drop in Nano Nuclear's long position.| Crane vs. Standex International | Crane vs. Donaldson | Crane vs. CSW Industrials | Crane vs. Franklin Electric Co |
| Nano Nuclear vs. TFI International | Nano Nuclear vs. Scandinavian Tobacco Group | Nano Nuclear vs. PepsiCo | Nano Nuclear vs. Turning Point Brands |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |