Correlation Between Standex International and Albany International

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Can any of the company-specific risk be diversified away by investing in both Standex International and Albany International 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 Standex International and Albany International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Standex International and Albany International, you can compare the effects of market volatilities on Standex International and Albany International 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 Standex International with a short position of Albany International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standex International and Albany International.

Diversification Opportunities for Standex International and Albany International

-0.75
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Standex and Albany is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Standex International and Albany International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albany International and Standex 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 Standex International are associated (or correlated) with Albany International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albany International has no effect on the direction of Standex International i.e., Standex International and Albany International go up and down completely randomly.

Pair Corralation between Standex International and Albany International

Considering the 90-day investment horizon Standex International is expected to generate 0.87 times more return on investment than Albany International. However, Standex International is 1.15 times less risky than Albany International. It trades about 0.16 of its potential returns per unit of risk. Albany International is currently generating about 0.0 per unit of risk. If you would invest  13,345  in Standex International on July 7, 2025 and sell it today you would earn a total of  8,016  from holding Standex International or generate 60.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Standex International  vs.  Albany International

 Performance 
       Timeline  
Standex International 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Standex International are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Standex International demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Albany International 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Albany International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Standex International and Albany International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Standex International and Albany International

The main advantage of trading using opposite Standex International and Albany International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standex International position performs unexpectedly, Albany International 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 Albany International will offset losses from the drop in Albany International's long position.
The idea behind Standex International and Albany International 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.
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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