Correlation Between CECO Environmental and INGERSOLL
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By analyzing existing cross correlation between CECO Environmental Corp and INGERSOLL RAND LUXEMBOURG FINANCE, you can compare the effects of market volatilities on CECO Environmental and INGERSOLL 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 INGERSOLL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and INGERSOLL.
Diversification Opportunities for CECO Environmental and INGERSOLL
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CECO and INGERSOLL is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and INGERSOLL RAND LUXEMBOURG FINA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INGERSOLL RAND LUXEM 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 INGERSOLL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INGERSOLL RAND LUXEM has no effect on the direction of CECO Environmental i.e., CECO Environmental and INGERSOLL go up and down completely randomly.
Pair Corralation between CECO Environmental and INGERSOLL
Given the investment horizon of 90 days CECO Environmental Corp is expected to generate 7.91 times more return on investment than INGERSOLL. However, CECO Environmental is 7.91 times more volatile than INGERSOLL RAND LUXEMBOURG FINANCE. It trades about 0.02 of its potential returns per unit of risk. INGERSOLL RAND LUXEMBOURG FINANCE is currently generating about 0.05 per unit of risk. If you would invest 2,885 in CECO Environmental Corp on September 26, 2024 and sell it today you would earn a total of 41.00 from holding CECO Environmental Corp or generate 1.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.2% |
Values | Daily Returns |
CECO Environmental Corp vs. INGERSOLL RAND LUXEMBOURG FINA
Performance |
Timeline |
CECO Environmental Corp |
INGERSOLL RAND LUXEM |
CECO Environmental and INGERSOLL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CECO Environmental and INGERSOLL
The main advantage of trading using opposite CECO Environmental and INGERSOLL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, INGERSOLL 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 INGERSOLL will offset losses from the drop in INGERSOLL's long position.CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Federal Signal | CECO Environmental vs. CO2 Solutions | CECO Environmental vs. Fuel Tech |
INGERSOLL vs. Paysafe | INGERSOLL vs. Analog Devices | INGERSOLL vs. Lipocine | INGERSOLL vs. CECO Environmental Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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