Correlation Between Cool Technologies and Global Industrial
Can any of the company-specific risk be diversified away by investing in both Cool Technologies and Global Industrial 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 Cool Technologies and Global Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cool Technologies and Global Industrial Co, you can compare the effects of market volatilities on Cool Technologies and Global Industrial 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 Cool Technologies with a short position of Global Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cool Technologies and Global Industrial.
Diversification Opportunities for Cool Technologies and Global Industrial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cool and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cool Technologies and Global Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Industrial and Cool Technologies 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 Cool Technologies are associated (or correlated) with Global Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Industrial has no effect on the direction of Cool Technologies i.e., Cool Technologies and Global Industrial go up and down completely randomly.
Pair Corralation between Cool Technologies and Global Industrial
If you would invest 0.01 in Cool Technologies on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Cool Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cool Technologies vs. Global Industrial Co
Performance |
| Timeline |
| Cool Technologies |
| Global Industrial |
Cool Technologies and Global Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cool Technologies and Global Industrial
The main advantage of trading using opposite Cool Technologies and Global Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cool Technologies position performs unexpectedly, Global Industrial 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 Global Industrial will offset losses from the drop in Global Industrial's long position.| Cool Technologies vs. DXP Enterprises | Cool Technologies vs. Applied Industrial Technologies | Cool Technologies vs. Ferguson Plc | Cool Technologies vs. Global Industrial Co |
| Global Industrial vs. Distribution Solutions Group | Global Industrial vs. Core Main | Global Industrial vs. Applied Industrial Technologies | Global Industrial vs. BlueLinx Holdings |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |