Correlation Between Crawford United and Daifuku
Can any of the company-specific risk be diversified away by investing in both Crawford United and Daifuku 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 Crawford United and Daifuku into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crawford United and Daifuku Co, you can compare the effects of market volatilities on Crawford United and Daifuku 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 Crawford United with a short position of Daifuku. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crawford United and Daifuku.
Diversification Opportunities for Crawford United and Daifuku
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Crawford and Daifuku is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Crawford United and Daifuku Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daifuku and Crawford United 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 Crawford United are associated (or correlated) with Daifuku. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daifuku has no effect on the direction of Crawford United i.e., Crawford United and Daifuku go up and down completely randomly.
Pair Corralation between Crawford United and Daifuku
Assuming the 90 days horizon Crawford United is expected to generate 1.35 times more return on investment than Daifuku. However, Crawford United is 1.35 times more volatile than Daifuku Co. It trades about 0.15 of its potential returns per unit of risk. Daifuku Co is currently generating about 0.03 per unit of risk. If you would invest 1,448 in Crawford United on September 3, 2024 and sell it today you would earn a total of 1,174 from holding Crawford United or generate 81.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 30.71% |
| Values | Daily Returns |
Crawford United vs. Daifuku Co
Performance |
| Timeline |
| Crawford United |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Daifuku |
Crawford United and Daifuku Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crawford United and Daifuku
The main advantage of trading using opposite Crawford United and Daifuku positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crawford United position performs unexpectedly, Daifuku 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 Daifuku will offset losses from the drop in Daifuku's long position.| Crawford United vs. New Ulm Telecom | Crawford United vs. Ieh Corp | Crawford United vs. FitLife Brands, Common | Crawford United vs. Butler National Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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