Correlation Between Crane and Hydrogen Hybrid

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

By analyzing existing cross correlation between Crane Company and Hydrogen Hybrid Technologies, you can compare the effects of market volatilities on Crane and Hydrogen Hybrid 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 Hydrogen Hybrid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crane and Hydrogen Hybrid.

Diversification Opportunities for Crane and Hydrogen Hybrid

0.0

Correlation Coefficient

Crane  Hydrogen Hybrid

Pay attention - limited upside

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

Pair Corralation between Crane and Hydrogen Hybrid

If you would invest  15,197  in Crane Company on December 28, 2024 and sell it today you would earn a total of  394.00  from holding Crane Company or generate 2.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Crane Company  vs.  Hydrogen Hybrid Technologies

Crane Company

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Crane Company are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Crane is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Hydrogen Hybrid Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hydrogen Hybrid Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Hydrogen Hybrid is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Crane and Hydrogen Hybrid

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

The idea behind Crane Company and Hydrogen Hybrid Technologies 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.