Correlation Between Nel ASA and Crawford United
Can any of the company-specific risk be diversified away by investing in both Nel ASA 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 Nel ASA and Crawford United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nel ASA and Crawford United, you can compare the effects of market volatilities on Nel ASA 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 Nel ASA with a short position of Crawford United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nel ASA and Crawford United.
Diversification Opportunities for Nel ASA and Crawford United
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nel and Crawford is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Nel ASA and Crawford United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford United and Nel ASA 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 Nel ASA 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 Nel ASA i.e., Nel ASA and Crawford United go up and down completely randomly.
Pair Corralation between Nel ASA and Crawford United
Assuming the 90 days horizon Nel ASA is expected to under-perform the Crawford United. In addition to that, Nel ASA is 1.58 times more volatile than Crawford United. It trades about -0.05 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 |
Nel ASA vs. Crawford United
Performance |
| Timeline |
| Nel ASA |
| Crawford United |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nel ASA and Crawford United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nel ASA and Crawford United
The main advantage of trading using opposite Nel ASA and Crawford United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nel ASA 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.| Nel ASA vs. Dear Cashmere Holding | Nel ASA vs. Goff Corp | Nel ASA vs. Wialan Technologies | Nel ASA 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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