Correlation Between CIRCOR International and Capstone Green
Can any of the company-specific risk be diversified away by investing in both CIRCOR International and Capstone Green 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 Capstone Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIRCOR International and Capstone Green Energy, you can compare the effects of market volatilities on CIRCOR International and Capstone Green 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 Capstone Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIRCOR International and Capstone Green.
Diversification Opportunities for CIRCOR International and Capstone Green
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CIRCOR and Capstone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CIRCOR International and Capstone Green Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Green Energy 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 Capstone Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Green Energy has no effect on the direction of CIRCOR International i.e., CIRCOR International and Capstone Green go up and down completely randomly.
Pair Corralation between CIRCOR International and Capstone Green
If you would invest 20.00 in Capstone Green Energy on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Capstone Green Energy or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CIRCOR International vs. Capstone Green Energy
Performance |
Timeline |
CIRCOR International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Capstone Green Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CIRCOR International and Capstone Green Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CIRCOR International and Capstone Green
The main advantage of trading using opposite CIRCOR International and Capstone Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIRCOR International position performs unexpectedly, Capstone Green 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 Capstone Green will offset losses from the drop in Capstone Green's long position.CIRCOR International vs. Helios Technologies | CIRCOR International vs. Enpro Industries | CIRCOR International vs. Omega Flex | CIRCOR International vs. Luxfer Holdings PLC |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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