Correlation Between CECO Environmental and Fold Holdings,

Can any of the company-specific risk be diversified away by investing in both CECO Environmental and Fold Holdings, 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 CECO Environmental and Fold Holdings, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CECO Environmental Corp and Fold Holdings, Warrant, you can compare the effects of market volatilities on CECO Environmental and Fold Holdings, 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 CECO Environmental with a short position of Fold Holdings,. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and Fold Holdings,.

Diversification Opportunities for CECO Environmental and Fold Holdings,

0.07

Correlation Coefficient

CECO Environmental  Fold Holdings,

Significant diversification

The 3 months correlation between CECO and Fold is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and Fold Holdings, Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fold Holdings, Warrant and CECO Environmental 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 CECO Environmental Corp are associated (or correlated) with Fold Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fold Holdings, Warrant has no effect on the direction of CECO Environmental i.e., CECO Environmental and Fold Holdings, go up and down completely randomly.

Pair Corralation between CECO Environmental and Fold Holdings,

Given the investment horizon of 90 days CECO Environmental Corp is expected to under-perform the Fold Holdings,. But the stock apears to be less risky and, when comparing its historical volatility, CECO Environmental Corp is 3.3 times less risky than Fold Holdings,. The stock trades about -0.1 of its potential returns per unit of risk. The Fold Holdings, Warrant is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  94.00  in Fold Holdings, Warrant on December 27, 2024 and sell it today you would lose (13.74) from holding Fold Holdings, Warrant or give up 14.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

CECO Environmental Corp  vs.  Fold Holdings, Warrant

CECO Environmental Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days CECO Environmental Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Fold Holdings, Warrant

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Fold Holdings, Warrant are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, Fold Holdings, may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with CECO Environmental and Fold Holdings,

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

The idea behind CECO Environmental Corp and Fold Holdings, Warrant 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.

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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.