Correlation Between Hillenbrand and Crane
Can any of the company-specific risk be diversified away by investing in both Hillenbrand and Crane 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 Hillenbrand and Crane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hillenbrand and Crane Company, you can compare the effects of market volatilities on Hillenbrand and Crane 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 Hillenbrand with a short position of Crane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hillenbrand and Crane.
Diversification Opportunities for Hillenbrand and Crane
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hillenbrand and Crane is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hillenbrand and Crane Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crane Company and Hillenbrand 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 Hillenbrand are associated (or correlated) with Crane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crane Company has no effect on the direction of Hillenbrand i.e., Hillenbrand and Crane go up and down completely randomly.
Pair Corralation between Hillenbrand and Crane
Allowing for the 90-day total investment horizon Hillenbrand is expected to under-perform the Crane. In addition to that, Hillenbrand is 1.34 times more volatile than Crane Company. It trades about 0.0 of its total potential returns per unit of risk. Crane Company is currently generating about 0.13 per unit of volatility. If you would invest 10,368 in Crane Company on August 24, 2024 and sell it today you would earn a total of 7,901 from holding Crane Company or generate 76.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hillenbrand vs. Crane Company
Performance |
| Timeline |
| Hillenbrand |
| Crane Company |
Hillenbrand and Crane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hillenbrand and Crane
The main advantage of trading using opposite Hillenbrand and Crane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hillenbrand position performs unexpectedly, Crane 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 Crane will offset losses from the drop in Crane's long position.| Hillenbrand vs. IDEX Corporation | Hillenbrand vs. Watts Water Technologies | Hillenbrand vs. Donaldson | Hillenbrand vs. Gorman Rupp |
| Crane vs. Standex International | Crane vs. Donaldson | Crane vs. CSW Industrials | Crane vs. Franklin Electric Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |