Correlation Between SERI INDUSTRIAL and CRAWFORD A
Can any of the company-specific risk be diversified away by investing in both SERI INDUSTRIAL and CRAWFORD A 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 SERI INDUSTRIAL and CRAWFORD A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SERI INDUSTRIAL EO and CRAWFORD A NV, you can compare the effects of market volatilities on SERI INDUSTRIAL and CRAWFORD A 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 SERI INDUSTRIAL with a short position of CRAWFORD A. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and CRAWFORD A.
Diversification Opportunities for SERI INDUSTRIAL and CRAWFORD A
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SERI and CRAWFORD is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO and CRAWFORD A NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRAWFORD A NV and SERI INDUSTRIAL 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 SERI INDUSTRIAL EO are associated (or correlated) with CRAWFORD A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRAWFORD A NV has no effect on the direction of SERI INDUSTRIAL i.e., SERI INDUSTRIAL and CRAWFORD A go up and down completely randomly.
Pair Corralation between SERI INDUSTRIAL and CRAWFORD A
Assuming the 90 days trading horizon SERI INDUSTRIAL EO is expected to under-perform the CRAWFORD A. In addition to that, SERI INDUSTRIAL is 1.16 times more volatile than CRAWFORD A NV. It trades about -0.04 of its total potential returns per unit of risk. CRAWFORD A NV is currently generating about 0.06 per unit of volatility. If you would invest 554.00 in CRAWFORD A NV on October 26, 2024 and sell it today you would earn a total of 536.00 from holding CRAWFORD A NV or generate 96.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SERI INDUSTRIAL EO vs. CRAWFORD A NV
Performance |
| Timeline |
| SERI INDUSTRIAL EO |
| CRAWFORD A NV |
SERI INDUSTRIAL and CRAWFORD A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SERI INDUSTRIAL and CRAWFORD A
The main advantage of trading using opposite SERI INDUSTRIAL and CRAWFORD A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL position performs unexpectedly, CRAWFORD A 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 A will offset losses from the drop in CRAWFORD A's long position.| SERI INDUSTRIAL vs. Transport International Holdings | SERI INDUSTRIAL vs. SCIENCE IN SPORT | SERI INDUSTRIAL vs. Magnachip Semiconductor | SERI INDUSTRIAL vs. Nordic Semiconductor ASA |
| CRAWFORD A vs. Quaker Chemical | CRAWFORD A vs. TIANDE CHEMICAL | CRAWFORD A vs. China BlueChemical | CRAWFORD A vs. Molson Coors Beverage |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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