Correlation Between Crane and Nuburu
Can any of the company-specific risk be diversified away by investing in both Crane and Nuburu 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 Crane and Nuburu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crane Company and Nuburu Inc, you can compare the effects of market volatilities on Crane and Nuburu 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 Crane with a short position of Nuburu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crane and Nuburu.
Diversification Opportunities for Crane and Nuburu
Very good diversification
The 3 months correlation between Crane and Nuburu is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Crane Company and Nuburu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuburu Inc and Crane 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 Crane Company are associated (or correlated) with Nuburu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuburu Inc has no effect on the direction of Crane i.e., Crane and Nuburu go up and down completely randomly.
Pair Corralation between Crane and Nuburu
Allowing for the 90-day total investment horizon Crane is expected to generate 4.63 times less return on investment than Nuburu. But when comparing it to its historical volatility, Crane Company is 9.91 times less risky than Nuburu. It trades about 0.13 of its potential returns per unit of risk. Nuburu Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 44.00 in Nuburu Inc on October 26, 2024 and sell it today you would lose (1.00) from holding Nuburu Inc or give up 2.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Crane Company vs. Nuburu Inc
Performance |
Timeline |
Crane Company |
Nuburu Inc |
Crane and Nuburu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Crane and Nuburu
The main advantage of trading using opposite Crane and Nuburu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crane position performs unexpectedly, Nuburu 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 Nuburu will offset losses from the drop in Nuburu's long position.Crane vs. Standex International | Crane vs. Donaldson | Crane vs. CSW Industrials | Crane vs. Franklin Electric Co |
Nuburu vs. Laser Photonics | Nuburu vs. JE Cleantech Holdings | Nuburu vs. Reelcause | Nuburu vs. Shapeways Holdings, Common |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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