Correlation Between Safe Pro and Espey Mfg
Can any of the company-specific risk be diversified away by investing in both Safe Pro and Espey Mfg 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 Safe Pro and Espey Mfg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe Pro Group and Espey Mfg Electronics, you can compare the effects of market volatilities on Safe Pro and Espey Mfg 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 Safe Pro with a short position of Espey Mfg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe Pro and Espey Mfg.
Diversification Opportunities for Safe Pro and Espey Mfg
Very good diversification
The 3 months correlation between Safe and Espey is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Safe Pro Group and Espey Mfg Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Espey Mfg Electronics and Safe Pro 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 Safe Pro Group are associated (or correlated) with Espey Mfg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Espey Mfg Electronics has no effect on the direction of Safe Pro i.e., Safe Pro and Espey Mfg go up and down completely randomly.
Pair Corralation between Safe Pro and Espey Mfg
Given the investment horizon of 90 days Safe Pro Group is expected to generate 2.16 times more return on investment than Espey Mfg. However, Safe Pro is 2.16 times more volatile than Espey Mfg Electronics. It trades about 0.17 of its potential returns per unit of risk. Espey Mfg Electronics is currently generating about -0.11 per unit of risk. If you would invest 385.00 in Safe Pro Group on July 22, 2025 and sell it today you would earn a total of 364.00 from holding Safe Pro Group or generate 94.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Safe Pro Group vs. Espey Mfg Electronics
Performance |
| Timeline |
| Safe Pro Group |
| Espey Mfg Electronics |
Safe Pro and Espey Mfg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe Pro and Espey Mfg
The main advantage of trading using opposite Safe Pro and Espey Mfg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe Pro position performs unexpectedly, Espey Mfg 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 Espey Mfg will offset losses from the drop in Espey Mfg's long position.| Safe Pro vs. HUHUTECH International Group | Safe Pro vs. Hurco Companies | Safe Pro vs. Odyssey Marine Exploration | Safe Pro vs. Optex Systems Holdings, |
| Espey Mfg vs. Ocean Power Technologies | Espey Mfg vs. ESS Tech | Espey Mfg vs. CBAK Energy Technology | Espey Mfg vs. Flux Power Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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