Correlation Between Standex International and Crawford United
Can any of the company-specific risk be diversified away by investing in both Standex International 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 Standex International and Crawford United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Standex International and Crawford United, you can compare the effects of market volatilities on Standex International 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 Standex International with a short position of Crawford United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standex International and Crawford United.
Diversification Opportunities for Standex International and Crawford United
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Standex and Crawford is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Standex International and Crawford United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford United and Standex International 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 Standex International 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 Standex International i.e., Standex International and Crawford United go up and down completely randomly.
Pair Corralation between Standex International and Crawford United
If you would invest 18,359 in Standex International on September 1, 2024 and sell it today you would earn a total of 2,430 from holding Standex International or generate 13.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Standex International vs. Crawford United
Performance |
| Timeline |
| Standex International |
| Crawford United |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Standex International and Crawford United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Standex International and Crawford United
The main advantage of trading using opposite Standex International and Crawford United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standex International 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.| Standex International vs. Gorman Rupp | Standex International vs. Franklin Electric Co | Standex International vs. Omega Flex | Standex International vs. China Yuchai International |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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