Correlation Between ITM Power and Crawford United
Can any of the company-specific risk be diversified away by investing in both ITM Power and Crawford United 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 ITM Power and Crawford United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITM Power Plc and Crawford United, you can compare the effects of market volatilities on ITM Power and Crawford United 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 ITM Power with a short position of Crawford United. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITM Power and Crawford United.
Diversification Opportunities for ITM Power and Crawford United
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ITM and Crawford is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding ITM Power Plc and Crawford United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford United and ITM Power 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 ITM Power Plc are associated (or correlated) with Crawford United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford United has no effect on the direction of ITM Power i.e., ITM Power and Crawford United go up and down completely randomly.
Pair Corralation between ITM Power and Crawford United
Assuming the 90 days horizon ITM Power Plc is expected to under-perform the Crawford United. In addition to that, ITM Power is 1.56 times more volatile than Crawford United. It trades about -0.02 of its total potential returns per unit of risk. Crawford United is currently generating about 0.15 per unit of volatility. If you would invest 1,448 in Crawford United on September 3, 2024 and sell it today you would earn a total of 1,174 from holding Crawford United or generate 81.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 30.71% |
| Values | Daily Returns |
ITM Power Plc vs. Crawford United
Performance |
| Timeline |
| ITM Power Plc |
| Crawford United |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ITM Power and Crawford United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITM Power and Crawford United
The main advantage of trading using opposite ITM Power and Crawford United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITM Power position performs unexpectedly, Crawford United 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 Crawford United will offset losses from the drop in Crawford United's long position.| ITM Power vs. Dear Cashmere Holding | ITM Power vs. Goff Corp | ITM Power vs. Wialan Technologies | ITM Power vs. Cgrowth Capital |
| Crawford United vs. New Ulm Telecom | Crawford United vs. Ieh Corp | Crawford United vs. FitLife Brands, Common | Crawford United vs. Butler National Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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