Correlation Between Standex International and Taylor Devices
Can any of the company-specific risk be diversified away by investing in both Standex International and Taylor Devices 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 Taylor Devices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Standex International and Taylor Devices, you can compare the effects of market volatilities on Standex International and Taylor Devices 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 Taylor Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standex International and Taylor Devices.
Diversification Opportunities for Standex International and Taylor Devices
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Standex and Taylor is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Standex International and Taylor Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taylor Devices 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 Taylor Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taylor Devices has no effect on the direction of Standex International i.e., Standex International and Taylor Devices go up and down completely randomly.
Pair Corralation between Standex International and Taylor Devices
Considering the 90-day investment horizon Standex International is expected to generate 0.52 times more return on investment than Taylor Devices. However, Standex International is 1.94 times less risky than Taylor Devices. It trades about 0.23 of its potential returns per unit of risk. Taylor Devices is currently generating about 0.04 per unit of risk. 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Standex International vs. Taylor Devices
Performance |
| Timeline |
| Standex International |
| Taylor Devices |
Standex International and Taylor Devices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Standex International and Taylor Devices
The main advantage of trading using opposite Standex International and Taylor Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standex International position performs unexpectedly, Taylor Devices 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 Taylor Devices will offset losses from the drop in Taylor Devices' long position.| Standex International vs. Gorman Rupp | Standex International vs. Franklin Electric Co | Standex International vs. Omega Flex | Standex International vs. China Yuchai International |
| Taylor Devices vs. Tennant Company | Taylor Devices vs. Kadant Inc | Taylor Devices vs. Enpro Industries | Taylor Devices vs. Luxfer Holdings PLC |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |