Correlation Between Richtech Robotics and Crawford United

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

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

Diversification Opportunities for Richtech Robotics and Crawford United

-0.85

Correlation Coefficient

Richtech Robotics  Crawford United

Pay attention - limited upside

The 3 months correlation between Richtech and Crawford is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Richtech Robotics Class and Crawford United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford United and Richtech Robotics 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 Richtech Robotics Class are associated (or correlated) with Crawford United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford United has no effect on the direction of Richtech Robotics i.e., Richtech Robotics and Crawford United go up and down completely randomly.

Pair Corralation between Richtech Robotics and Crawford United

If you would invest  2,622  in Crawford United on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Crawford United or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	1.56%
Values	Daily Returns

Richtech Robotics Class  vs.  Crawford United

Richtech Robotics Class

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Richtech Robotics Class has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Crawford United

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Richtech Robotics and Crawford United

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

The idea behind Richtech Robotics Class and Crawford United 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.