Correlation Between MSA Safety and Connexus Corp
Can any of the company-specific risk be diversified away by investing in both MSA Safety and Connexus Corp 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 MSA Safety and Connexus Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSA Safety and Connexus Corp, you can compare the effects of market volatilities on MSA Safety and Connexus Corp 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 MSA Safety with a short position of Connexus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSA Safety and Connexus Corp.
Diversification Opportunities for MSA Safety and Connexus Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MSA and Connexus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MSA Safety and Connexus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Connexus Corp and MSA Safety 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 MSA Safety are associated (or correlated) with Connexus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Connexus Corp has no effect on the direction of MSA Safety i.e., MSA Safety and Connexus Corp go up and down completely randomly.
Pair Corralation between MSA Safety and Connexus Corp
If you would invest 16,353 in MSA Safety on September 3, 2024 and sell it today you would earn a total of 1,028 from holding MSA Safety or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MSA Safety vs. Connexus Corp
Performance |
| Timeline |
| MSA Safety |
| Connexus Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MSA Safety and Connexus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSA Safety and Connexus Corp
The main advantage of trading using opposite MSA Safety and Connexus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSA Safety position performs unexpectedly, Connexus Corp 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 Connexus Corp will offset losses from the drop in Connexus Corp's long position.| MSA Safety vs. Allegion PLC | MSA Safety vs. Resideo Technologies | MSA Safety vs. NL Industries | MSA Safety vs. Brady |
| Connexus Corp vs. Hooker Furniture | Connexus Corp vs. MSA Safety | Connexus Corp vs. China Teletech Holding | Connexus Corp vs. United Fire Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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