Correlation Between CECO Environmental and Intertrust

Can any of the company-specific risk be diversified away by investing in both CECO Environmental and Intertrust 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 Intertrust 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 Intertrust NV, you can compare the effects of market volatilities on CECO Environmental and Intertrust 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 Intertrust. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and Intertrust.

Diversification Opportunities for CECO Environmental and Intertrust

0.0

Correlation Coefficient

CECO Environmental  Intertrust

Pay attention - limited upside

The 3 months correlation between CECO and Intertrust is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and Intertrust NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intertrust NV 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 Intertrust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intertrust NV has no effect on the direction of CECO Environmental i.e., CECO Environmental and Intertrust go up and down completely randomly.

Pair Corralation between CECO Environmental and Intertrust

If you would invest (100.00) in Intertrust NV on December 4, 2024 and sell it today you would earn a total of  100.00  from holding Intertrust NV or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CECO Environmental Corp  vs.  Intertrust NV

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 uncertain 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.

Intertrust NV

Risk-Adjusted Performance

Very Weak

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

Pair Trading with CECO Environmental and Intertrust

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

The idea behind CECO Environmental Corp and Intertrust 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.