Correlation Between CSW Industrials and Intevac
Can any of the company-specific risk be diversified away by investing in both CSW Industrials and Intevac 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 CSW Industrials and Intevac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSW Industrials and Intevac, you can compare the effects of market volatilities on CSW Industrials and Intevac 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 CSW Industrials with a short position of Intevac. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSW Industrials and Intevac.
Diversification Opportunities for CSW Industrials and Intevac
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CSW and Intevac is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding CSW Industrials and Intevac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intevac and CSW Industrials 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 CSW Industrials are associated (or correlated) with Intevac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intevac has no effect on the direction of CSW Industrials i.e., CSW Industrials and Intevac go up and down completely randomly.
Pair Corralation between CSW Industrials and Intevac
Given the investment horizon of 90 days CSW Industrials is expected to generate 0.41 times more return on investment than Intevac. However, CSW Industrials is 2.45 times less risky than Intevac. It trades about 0.3 of its potential returns per unit of risk. Intevac is currently generating about -0.14 per unit of risk. If you would invest 36,318 in CSW Industrials on August 30, 2024 and sell it today you would earn a total of 5,405 from holding CSW Industrials or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSW Industrials vs. Intevac
Performance |
| Timeline |
| CSW Industrials |
| Intevac |
CSW Industrials and Intevac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSW Industrials and Intevac
The main advantage of trading using opposite CSW Industrials and Intevac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSW Industrials position performs unexpectedly, Intevac 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 Intevac will offset losses from the drop in Intevac's long position.| CSW Industrials vs. Enerpac Tool Group | CSW Industrials vs. Luxfer Holdings PLC | CSW Industrials vs. John Bean Technologies | CSW Industrials vs. ITT Inc |
| Intevac vs. Rigetti Computing | Intevac vs. D Wave Quantum | Intevac vs. IONQ Inc | Intevac vs. Desktop Metal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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