Correlation Between CRAWFORD A and Steadfast Group

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

CRAWFORD A NV  vs.  Steadfast Group Limited

 Performance 
       Timeline  
CRAWFORD A NV 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in CRAWFORD A NV are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking signals, CRAWFORD A reported solid returns over the last few months and may actually be approaching a breakup point.
Steadfast Group 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Steadfast Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Steadfast Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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.
The idea behind CRAWFORD A NV and Steadfast Group Limited 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.
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.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Bonds Directory
Find actively traded corporate debentures issued by US companies