Correlation Between Energy Recovery and PMFG
Can any of the company-specific risk be diversified away by investing in both Energy Recovery and PMFG 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 Energy Recovery and PMFG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Recovery and PMFG Inc, you can compare the effects of market volatilities on Energy Recovery and PMFG 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 Energy Recovery with a short position of PMFG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Recovery and PMFG.
Diversification Opportunities for Energy Recovery and PMFG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Energy and PMFG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Energy Recovery and PMFG Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PMFG Inc and Energy Recovery 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 Energy Recovery are associated (or correlated) with PMFG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PMFG Inc has no effect on the direction of Energy Recovery i.e., Energy Recovery and PMFG go up and down completely randomly.
Pair Corralation between Energy Recovery and PMFG
If you would invest 0.00 in PMFG Inc on February 7, 2024 and sell it today you would earn a total of 0.00 from holding PMFG Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Energy Recovery vs. PMFG Inc
Performance |
| Timeline |
| Energy Recovery |
| PMFG Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Energy Recovery and PMFG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Recovery and PMFG
The main advantage of trading using opposite Energy Recovery and PMFG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Recovery position performs unexpectedly, PMFG 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 PMFG will offset losses from the drop in PMFG's long position.| Energy Recovery vs. Federal Signal | Energy Recovery vs. Zurn Elkay Water | Energy Recovery vs. Fuel Tech | Energy Recovery vs. CO2 Solutions |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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