Correlation Between CECO Environmental and Paiute Oil

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

Diversification Opportunities for CECO Environmental and Paiute Oil

0.0

Correlation Coefficient

CECO Environmental  Paiute Oil

Pay attention - limited upside

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

Pair Corralation between CECO Environmental and Paiute Oil

If you would invest  0.00  in Paiute Oil Mining on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Paiute Oil Mining or generate 0.0% return on investment over 90 days.

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

CECO Environmental Corp  vs.  Paiute Oil Mining

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.

Paiute Oil Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Paiute Oil Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Paiute Oil is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with CECO Environmental and Paiute Oil

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

The idea behind CECO Environmental Corp and Paiute Oil Mining 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.