Correlation Between CIRCOR International and Altra Industrial
Can any of the company-specific risk be diversified away by investing in both CIRCOR International and Altra Industrial 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 CIRCOR International and Altra Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIRCOR International and Altra Industrial Motion, you can compare the effects of market volatilities on CIRCOR International and Altra Industrial 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 CIRCOR International with a short position of Altra Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIRCOR International and Altra Industrial.
Diversification Opportunities for CIRCOR International and Altra Industrial
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CIRCOR and Altra is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding CIRCOR International and Altra Industrial Motion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altra Industrial Motion and CIRCOR International 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 CIRCOR International are associated (or correlated) with Altra Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altra Industrial Motion has no effect on the direction of CIRCOR International i.e., CIRCOR International and Altra Industrial go up and down completely randomly.
Pair Corralation between CIRCOR International and Altra Industrial
If you would invest 6,198 in Altra Industrial Motion on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Altra Industrial Motion or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CIRCOR International vs. Altra Industrial Motion
Performance |
Timeline |
CIRCOR International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altra Industrial Motion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CIRCOR International and Altra Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CIRCOR International and Altra Industrial
The main advantage of trading using opposite CIRCOR International and Altra Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIRCOR International position performs unexpectedly, Altra Industrial 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 Altra Industrial will offset losses from the drop in Altra Industrial's long position.CIRCOR International vs. Helios Technologies | CIRCOR International vs. Enpro Industries | CIRCOR International vs. Omega Flex | CIRCOR International vs. Luxfer Holdings PLC |
Altra Industrial vs. Franklin Electric Co | Altra Industrial vs. Donaldson | Altra Industrial vs. John Bean Technologies | Altra Industrial vs. ITT 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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