Correlation Between Clairvest and Buhler Industries
Can any of the company-specific risk be diversified away by investing in both Clairvest and Buhler Industries 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 Clairvest and Buhler Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clairvest Group and Buhler Industries, you can compare the effects of market volatilities on Clairvest and Buhler Industries 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 Clairvest with a short position of Buhler Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clairvest and Buhler Industries.
Diversification Opportunities for Clairvest and Buhler Industries
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clairvest and Buhler is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Clairvest Group and Buhler Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buhler Industries and Clairvest 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 Clairvest Group are associated (or correlated) with Buhler Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buhler Industries has no effect on the direction of Clairvest i.e., Clairvest and Buhler Industries go up and down completely randomly.
Pair Corralation between Clairvest and Buhler Industries
Assuming the 90 days trading horizon Clairvest is expected to generate 13.79 times less return on investment than Buhler Industries. But when comparing it to its historical volatility, Clairvest Group is 6.36 times less risky than Buhler Industries. It trades about 0.1 of its potential returns per unit of risk. Buhler Industries is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 245.00 in Buhler Industries on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Buhler Industries or generate 20.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clairvest Group vs. Buhler Industries
Performance |
| Timeline |
| Clairvest Group |
| Buhler Industries |
Clairvest and Buhler Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clairvest and Buhler Industries
The main advantage of trading using opposite Clairvest and Buhler Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clairvest position performs unexpectedly, Buhler Industries 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 Buhler Industries will offset losses from the drop in Buhler Industries' long position.| Clairvest vs. Clarke Inc | Clairvest vs. Guardian Capital Group | Clairvest vs. Accord Financial Corp | Clairvest vs. E L Financial Corp |
| Buhler Industries vs. Clarke Inc | Buhler Industries vs. Accord Financial Corp | Buhler Industries vs. ADF Group | Buhler Industries vs. Algoma Central |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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