Correlation Between Rockwell Automation and Crawford United
Can any of the company-specific risk be diversified away by investing in both Rockwell Automation 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 Rockwell Automation and Crawford United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rockwell Automation and Crawford United, you can compare the effects of market volatilities on Rockwell Automation 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 Rockwell Automation with a short position of Crawford United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rockwell Automation and Crawford United.
Diversification Opportunities for Rockwell Automation and Crawford United
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rockwell and Crawford is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Rockwell Automation and Crawford United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford United and Rockwell Automation 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 Rockwell Automation 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 Rockwell Automation i.e., Rockwell Automation and Crawford United go up and down completely randomly.
Pair Corralation between Rockwell Automation and Crawford United
If you would invest 26,530 in Rockwell Automation on August 29, 2024 and sell it today you would earn a total of 3,070 from holding Rockwell Automation or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Rockwell Automation vs. Crawford United
Performance |
| Timeline |
| Rockwell Automation |
| Crawford United |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rockwell Automation and Crawford United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rockwell Automation and Crawford United
The main advantage of trading using opposite Rockwell Automation and Crawford United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rockwell Automation 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.| Rockwell Automation vs. Dover | Rockwell Automation vs. Illinois Tool Works | Rockwell Automation vs. Ingersoll Rand | Rockwell Automation vs. Eaton PLC |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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