Correlation Between CECO Environmental and CCC

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Can any of the company-specific risk be diversified away by investing in both CECO Environmental and CCC 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 CECO Environmental and CCC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CECO Environmental Corp and CCC, you can compare the effects of market volatilities on CECO Environmental and CCC 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 CECO Environmental with a short position of CCC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and CCC.

Diversification Opportunities for CECO Environmental and CCC

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between CECO Environmental and CCC

If you would invest  496.00  in CECO Environmental Corp on December 29, 2023 and sell it today you would lose (496.00) from holding CECO Environmental Corp or give up 100.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

CECO Environmental Corp  vs.  CCC

 Performance 
       Timeline  
CECO Environmental Corp 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days CECO Environmental Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, CECO Environmental is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
CCC 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days CCC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, CCC is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

CECO Environmental and CCC Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CECO Environmental and CCC

The main advantage of trading using opposite CECO Environmental and CCC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, CCC 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 CCC will offset losses from the drop in CCC's long position.
The idea behind CECO Environmental Corp and CCC 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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