Correlation Between Superior Plus and CRAWFORD A

Can any of the company-specific risk be diversified away by investing in both Superior Plus and CRAWFORD A 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 Superior Plus and CRAWFORD A into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Superior Plus Corp and CRAWFORD A NV, you can compare the effects of market volatilities on Superior Plus and CRAWFORD A 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 Superior Plus with a short position of CRAWFORD A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and CRAWFORD A.

Diversification Opportunities for Superior Plus and CRAWFORD A

-0.35

Correlation Coefficient

Superior Plus  CRAWFORD A

Very good diversification

The 3 months correlation between Superior and CRAWFORD is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and CRAWFORD A NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRAWFORD A NV and Superior Plus 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 Superior Plus Corp are associated (or correlated) with CRAWFORD A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRAWFORD A NV has no effect on the direction of Superior Plus i.e., Superior Plus and CRAWFORD A go up and down completely randomly.

Pair Corralation between Superior Plus and CRAWFORD A

Assuming the 90 days horizon Superior Plus is expected to generate 6.2 times less return on investment than CRAWFORD A. In addition to that, Superior Plus is 1.39 times more volatile than CRAWFORD A NV. It trades about 0.01 of its total potential returns per unit of risk. CRAWFORD A NV is currently generating about 0.08 per unit of volatility. If you would invest  1,003  in CRAWFORD A NV on October 26, 2024 and sell it today you would earn a total of  97.00  from holding CRAWFORD A NV or generate 9.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Superior Plus Corp  vs.  CRAWFORD A NV

Superior Plus Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Superior Plus Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Superior Plus is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

CRAWFORD A NV

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CRAWFORD A NV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking signals, CRAWFORD A may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Superior Plus and CRAWFORD A

The main advantage of trading using opposite Superior Plus and CRAWFORD A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, CRAWFORD A 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 A will offset losses from the drop in CRAWFORD A's long position.

The idea behind Superior Plus Corp and CRAWFORD A NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.