Correlation Analysis Between Federal Signal and Churchill Capital

This module allows you to analyze existing cross correlation between Federal Signal Corporation and Churchill Capital Corp. You can compare the effects of market volatilities on Federal Signal and Churchill Capital 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 Federal Signal with a short position of Churchill Capital. See also your portfolio center. Please also check ongoing floating volatility patterns of Federal Signal and Churchill Capital.
Horizon     30 Days    Login   to change
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Comparative Performance

Federal Signal  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Federal Signal Corporation are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, Federal Signal reported solid returns over the last few months and may actually be approaching a breakup point.
Churchill Capital Corp  
1414

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Churchill Capital Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unsteady basic indicators, Churchill Capital sustained solid returns over the last few months and may actually be approaching a breakup point.

Federal Signal and Churchill Capital Volatility Contrast

 Predicted Return Density 
      Returns 

Federal Signal Corp.  vs.  Churchill Capital Corp

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Federal Signal is expected to generate 1.52 times less return on investment than Churchill Capital. In addition to that, Federal Signal is 1.43 times more volatile than Churchill Capital Corp. It trades about 0.1 of its total potential returns per unit of risk. Churchill Capital Corp is currently generating about 0.22 per unit of volatility. If you would invest  1,486  in Churchill Capital Corp on July 27, 2019 and sell it today you would earn a total of  272.00  from holding Churchill Capital Corp or generate 18.3% return on investment over 30 days.

Pair Corralation between Federal Signal and Churchill Capital

-0.88
Time Period2 Months [change]
DirectionNegative 
StrengthSignificant
Accuracy75.44%
ValuesDaily Returns

Diversification Opportunities for Federal Signal and Churchill Capital

Federal Signal Corp. diversification synergy

Pay attention

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