Correlation Between CRAWFORD A and Steadfast Group
Can any of the company-specific risk be diversified away by investing in both CRAWFORD A and Steadfast Group 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 A and Steadfast Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CRAWFORD A NV and Steadfast Group Limited, you can compare the effects of market volatilities on CRAWFORD A and Steadfast Group 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 A with a short position of Steadfast Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRAWFORD A and Steadfast Group.
Diversification Opportunities for CRAWFORD A and Steadfast Group
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CRAWFORD and Steadfast is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding CRAWFORD A NV and Steadfast Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steadfast Group and CRAWFORD A 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 A NV are associated (or correlated) with Steadfast Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steadfast Group has no effect on the direction of CRAWFORD A i.e., CRAWFORD A and Steadfast Group go up and down completely randomly.
Pair Corralation between CRAWFORD A and Steadfast Group
Assuming the 90 days trading horizon CRAWFORD A NV is expected to generate 1.69 times more return on investment than Steadfast Group. However, CRAWFORD A is 1.69 times more volatile than Steadfast Group Limited. It trades about 0.03 of its potential returns per unit of risk. Steadfast Group Limited is currently generating about 0.02 per unit of risk. If you would invest 980.00 in CRAWFORD A NV on September 27, 2024 and sell it today you would earn a total of 80.00 from holding CRAWFORD A NV or generate 8.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CRAWFORD A NV vs. Steadfast Group Limited
Performance |
Timeline |
CRAWFORD A NV |
Steadfast Group |
CRAWFORD A and Steadfast Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CRAWFORD A and Steadfast Group
The main advantage of trading using opposite CRAWFORD A and Steadfast Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRAWFORD A position performs unexpectedly, Steadfast Group 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 Steadfast Group will offset losses from the drop in Steadfast Group's long position.CRAWFORD A vs. PT Ace Hardware | CRAWFORD A vs. NAKED WINES PLC | CRAWFORD A vs. VIRGIN WINES UK | CRAWFORD A vs. SALESFORCE INC CDR |
Steadfast Group vs. Marsh McLennan Companies | Steadfast Group vs. Aon PLC | Steadfast Group vs. Arthur J Gallagher | Steadfast Group vs. Willis Towers Watson |
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 CEOs Directory module to screen CEOs from public companies around the world.
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