Correlation Between CRAWFORD + and BUDWEISER BREWUNSPADR/4
Can any of the company-specific risk be diversified away by investing in both CRAWFORD + and BUDWEISER BREWUNSPADR/4 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 + and BUDWEISER BREWUNSPADR/4 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CRAWFORD A NV and BUDWEISER BREWUNSPADR4, you can compare the effects of market volatilities on CRAWFORD + and BUDWEISER BREWUNSPADR/4 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 + with a short position of BUDWEISER BREWUNSPADR/4. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRAWFORD + and BUDWEISER BREWUNSPADR/4.
Diversification Opportunities for CRAWFORD + and BUDWEISER BREWUNSPADR/4
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CRAWFORD and BUDWEISER is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding CRAWFORD A NV and BUDWEISER BREWUNSPADR4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BUDWEISER BREWUNSPADR/4 and CRAWFORD + 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 A NV are associated (or correlated) with BUDWEISER BREWUNSPADR/4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BUDWEISER BREWUNSPADR/4 has no effect on the direction of CRAWFORD + i.e., CRAWFORD + and BUDWEISER BREWUNSPADR/4 go up and down completely randomly.
Pair Corralation between CRAWFORD + and BUDWEISER BREWUNSPADR/4
Assuming the 90 days trading horizon CRAWFORD A NV is expected to generate 0.99 times more return on investment than BUDWEISER BREWUNSPADR/4. However, CRAWFORD A NV is 1.01 times less risky than BUDWEISER BREWUNSPADR/4. It trades about 0.01 of its potential returns per unit of risk. BUDWEISER BREWUNSPADR4 is currently generating about -0.04 per unit of risk. If you would invest 1,040 in CRAWFORD A NV on October 12, 2024 and sell it today you would earn a total of 0.00 from holding CRAWFORD A NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CRAWFORD A NV vs. BUDWEISER BREWUNSPADR4
Performance |
| Timeline |
| CRAWFORD A NV |
| BUDWEISER BREWUNSPADR/4 |
CRAWFORD + and BUDWEISER BREWUNSPADR/4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CRAWFORD + and BUDWEISER BREWUNSPADR/4
The main advantage of trading using opposite CRAWFORD + and BUDWEISER BREWUNSPADR/4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRAWFORD + position performs unexpectedly, BUDWEISER BREWUNSPADR/4 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 BUDWEISER BREWUNSPADR/4 will offset losses from the drop in BUDWEISER BREWUNSPADR/4's long position.| CRAWFORD + vs. Fukuyama Transporting Co | CRAWFORD + vs. SPORT LISBOA E | CRAWFORD + vs. SPORTING | CRAWFORD + vs. AWILCO DRILLING PLC |
| BUDWEISER BREWUNSPADR/4 vs. RCI Hospitality Holdings | BUDWEISER BREWUNSPADR/4 vs. ETFS Coffee ETC | BUDWEISER BREWUNSPADR/4 vs. Planet Fitness | BUDWEISER BREWUNSPADR/4 vs. Phibro Animal Health |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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