Correlation Between Crawford and FANH Old

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

By analyzing existing cross correlation between Crawford Company and FANH Old, you can compare the effects of market volatilities on Crawford and FANH Old 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 Crawford with a short position of FANH Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crawford and FANH Old.

Diversification Opportunities for Crawford and FANH Old

0.0

Correlation Coefficient

Crawford  FANH Old

Pay attention - limited upside

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

Pair Corralation between Crawford and FANH Old

If you would invest  1,129  in Crawford Company on December 20, 2024 and sell it today you would lose (13.00) from holding Crawford Company or give up 1.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Crawford Company  vs.  FANH Old

Crawford

Risk-Adjusted Performance

Very Weak

Over the last 90 days Crawford Company has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Crawford is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

FANH Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days FANH Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, FANH Old is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Crawford and FANH Old

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

The idea behind Crawford Company and FANH Old 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.