Correlation Between Shyft and CEA Industries
Can any of the company-specific risk be diversified away by investing in both Shyft and CEA Industries 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 Shyft and CEA Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shyft Group and CEA Industries, you can compare the effects of market volatilities on Shyft and CEA Industries 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 Shyft with a short position of CEA Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shyft and CEA Industries.
Diversification Opportunities for Shyft and CEA Industries
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shyft and CEA is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shyft Group and CEA Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEA Industries and Shyft 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 Shyft Group are associated (or correlated) with CEA Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEA Industries has no effect on the direction of Shyft i.e., Shyft and CEA Industries go up and down completely randomly.
Pair Corralation between Shyft and CEA Industries
Given the investment horizon of 90 days Shyft Group is expected to generate 1.17 times more return on investment than CEA Industries. However, Shyft is 1.17 times more volatile than CEA Industries. It trades about 0.05 of its potential returns per unit of risk. CEA Industries is currently generating about -0.04 per unit of risk. If you would invest 1,174 in Shyft Group on November 1, 2024 and sell it today you would earn a total of 28.00 from holding Shyft Group or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shyft Group vs. CEA Industries
Performance |
| Timeline |
| Shyft Group |
| CEA Industries |
Shyft and CEA Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shyft and CEA Industries
The main advantage of trading using opposite Shyft and CEA Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shyft position performs unexpectedly, CEA Industries 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 CEA Industries will offset losses from the drop in CEA Industries' long position.| Shyft vs. Astec Industries | Shyft vs. Hyster Yale Materials Handling | Shyft vs. Rev Group | Shyft vs. Lindsay |
| CEA Industries vs. Rev Group | CEA Industries vs. Caterpillar | CEA Industries vs. Buhler Industries | CEA Industries vs. Austin Engineering Limited |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |