Correlation Between CRAWFORD + and BROADPEAK
Can any of the company-specific risk be diversified away by investing in both CRAWFORD + and BROADPEAK 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 BROADPEAK 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 BROADPEAK SA EO, you can compare the effects of market volatilities on CRAWFORD + and BROADPEAK 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 BROADPEAK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRAWFORD + and BROADPEAK.
Diversification Opportunities for CRAWFORD + and BROADPEAK
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CRAWFORD and BROADPEAK is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding CRAWFORD A NV and BROADPEAK SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BROADPEAK SA EO 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 BROADPEAK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BROADPEAK SA EO has no effect on the direction of CRAWFORD + i.e., CRAWFORD + and BROADPEAK go up and down completely randomly.
Pair Corralation between CRAWFORD + and BROADPEAK
Assuming the 90 days trading horizon CRAWFORD A NV is expected to generate 2.73 times more return on investment than BROADPEAK. However, CRAWFORD + is 2.73 times more volatile than BROADPEAK SA EO. It trades about 0.11 of its potential returns per unit of risk. BROADPEAK SA EO is currently generating about 0.16 per unit of risk. If you would invest 1,050 in CRAWFORD A NV on October 17, 2024 and sell it today you would earn a total of 60.00 from holding CRAWFORD A NV or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CRAWFORD A NV vs. BROADPEAK SA EO
Performance |
| Timeline |
| CRAWFORD A NV |
| BROADPEAK SA EO |
CRAWFORD + and BROADPEAK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CRAWFORD + and BROADPEAK
The main advantage of trading using opposite CRAWFORD + and BROADPEAK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRAWFORD + position performs unexpectedly, BROADPEAK 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 BROADPEAK will offset losses from the drop in BROADPEAK's long position.| CRAWFORD + vs. Brown Brown | CRAWFORD + vs. Sabre Insurance Group | CRAWFORD + vs. Superior Plus Corp | CRAWFORD + vs. NMI Holdings |
| BROADPEAK vs. Magic Software Enterprises | BROADPEAK vs. SCIENCE IN SPORT | BROADPEAK vs. MAGIC SOFTWARE ENTR | BROADPEAK vs. Alfa Financial Software |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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