Correlation Between Crawford United and Nordson
Can any of the company-specific risk be diversified away by investing in both Crawford United and Nordson 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 Nordson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crawford United and Nordson, you can compare the effects of market volatilities on Crawford United and Nordson 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 Nordson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crawford United and Nordson.
Diversification Opportunities for Crawford United and Nordson
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Crawford and Nordson is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Crawford United and Nordson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordson 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 Nordson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordson has no effect on the direction of Crawford United i.e., Crawford United and Nordson go up and down completely randomly.
Pair Corralation between Crawford United and Nordson
If you would invest 24,903 in Nordson on September 2, 2024 and sell it today you would earn a total of 1,196 from holding Nordson or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Crawford United vs. Nordson
Performance |
| Timeline |
| Crawford United |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nordson |
Crawford United and Nordson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crawford United and Nordson
The main advantage of trading using opposite Crawford United and Nordson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crawford United position performs unexpectedly, Nordson 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 Nordson will offset losses from the drop in Nordson'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 |
| Nordson vs. Illinois Tool Works | Nordson vs. Pentair PLC | Nordson vs. Parker Hannifin | Nordson vs. Emerson Electric |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |