Correlation Between Caesarstone and Pioneer Power
Can any of the company-specific risk be diversified away by investing in both Caesarstone and Pioneer Power 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 Caesarstone and Pioneer Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caesarstone and Pioneer Power Solutions, you can compare the effects of market volatilities on Caesarstone and Pioneer Power 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 Caesarstone with a short position of Pioneer Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caesarstone and Pioneer Power.
Diversification Opportunities for Caesarstone and Pioneer Power
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Caesarstone and Pioneer is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Caesarstone and Pioneer Power Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Power Solutions and Caesarstone 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 Caesarstone are associated (or correlated) with Pioneer Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Power Solutions has no effect on the direction of Caesarstone i.e., Caesarstone and Pioneer Power go up and down completely randomly.
Pair Corralation between Caesarstone and Pioneer Power
Given the investment horizon of 90 days Caesarstone is expected to generate 1.42 times more return on investment than Pioneer Power. However, Caesarstone is 1.42 times more volatile than Pioneer Power Solutions. It trades about 0.04 of its potential returns per unit of risk. Pioneer Power Solutions is currently generating about 0.02 per unit of risk. If you would invest 142.00 in Caesarstone on August 30, 2025 and sell it today you would earn a total of 8.00 from holding Caesarstone or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caesarstone vs. Pioneer Power Solutions
Performance |
| Timeline |
| Caesarstone |
| Pioneer Power Solutions |
Caesarstone and Pioneer Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caesarstone and Pioneer Power
The main advantage of trading using opposite Caesarstone and Pioneer Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caesarstone position performs unexpectedly, Pioneer Power 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 Pioneer Power will offset losses from the drop in Pioneer Power's long position.| Caesarstone vs. Good Times Restaurants | Caesarstone vs. nDatalyze Corp | Caesarstone vs. Pure Storage | Caesarstone vs. Alibaba Health Information |
| Pioneer Power vs. Evolution Mining Limited | Pioneer Power vs. Nicola Mining | Pioneer Power vs. Catalyst Metals Limited | Pioneer Power vs. Zijin Mining Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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