Correlation Between CRA International and NORFOLK
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By analyzing existing cross correlation between CRA International and NORFOLK SOUTHN P, you can compare the effects of market volatilities on CRA International and NORFOLK 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 CRA International with a short position of NORFOLK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRA International and NORFOLK.
Diversification Opportunities for CRA International and NORFOLK
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CRA and NORFOLK is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding CRA International and NORFOLK SOUTHN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORFOLK SOUTHN P and CRA International 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 CRA International are associated (or correlated) with NORFOLK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORFOLK SOUTHN P has no effect on the direction of CRA International i.e., CRA International and NORFOLK go up and down completely randomly.
Pair Corralation between CRA International and NORFOLK
Given the investment horizon of 90 days CRA International is expected to under-perform the NORFOLK. In addition to that, CRA International is 8.97 times more volatile than NORFOLK SOUTHN P. It trades about -0.07 of its total potential returns per unit of risk. NORFOLK SOUTHN P is currently generating about -0.15 per unit of volatility. If you would invest 9,738 in NORFOLK SOUTHN P on September 24, 2024 and sell it today you would lose (89.00) from holding NORFOLK SOUTHN P or give up 0.91% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.0% |
Values | Daily Returns |
CRA International vs. NORFOLK SOUTHN P
Performance |
Timeline |
CRA International |
NORFOLK SOUTHN P |
CRA International and NORFOLK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CRA International and NORFOLK
The main advantage of trading using opposite CRA International and NORFOLK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRA International position performs unexpectedly, NORFOLK 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 NORFOLK will offset losses from the drop in NORFOLK's long position.CRA International vs. Franklin Covey | CRA International vs. ICF International | CRA International vs. Huron Consulting Group | CRA International vs. FTI Consulting |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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