Correlation Between CECO Environmental and Atlas Technical
Can any of the company-specific risk be diversified away by investing in both CECO Environmental and Atlas Technical 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 Atlas Technical 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 Atlas Technical Consultants, you can compare the effects of market volatilities on CECO Environmental and Atlas Technical 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 Atlas Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and Atlas Technical.
Diversification Opportunities for CECO Environmental and Atlas Technical
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CECO and Atlas is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp and Atlas Technical Consultants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Technical Cons 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 Atlas Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Technical Cons has no effect on the direction of CECO Environmental i.e., CECO Environmental and Atlas Technical go up and down completely randomly.
Pair Corralation between CECO Environmental and Atlas Technical
If you would invest 2,059 in CECO Environmental Corp on February 23, 2024 and sell it today you would earn a total of 250.00 from holding CECO Environmental Corp or generate 12.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 1.56% |
Values | Daily Returns |
CECO Environmental Corp vs. Atlas Technical Consultants
Performance |
Timeline |
CECO Environmental Corp |
Atlas Technical Cons |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CECO Environmental and Atlas Technical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CECO Environmental and Atlas Technical
The main advantage of trading using opposite CECO Environmental and Atlas Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental position performs unexpectedly, Atlas Technical 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 Atlas Technical will offset losses from the drop in Atlas Technical's long position.The idea behind CECO Environmental Corp and Atlas Technical Consultants 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.Atlas Technical vs. Radcom | Atlas Technical vs. Sphere Entertainment Co | Atlas Technical vs. Weibo Corp | Atlas Technical vs. BCE Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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