Correlation Between Standex International and Kadant
Can any of the company-specific risk be diversified away by investing in both Standex International and Kadant 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 Kadant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Standex International and Kadant Inc, you can compare the effects of market volatilities on Standex International and Kadant 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 Kadant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standex International and Kadant.
Diversification Opportunities for Standex International and Kadant
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Standex and Kadant is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Standex International and Kadant Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kadant Inc 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 Kadant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kadant Inc has no effect on the direction of Standex International i.e., Standex International and Kadant go up and down completely randomly.
Pair Corralation between Standex International and Kadant
Considering the 90-day investment horizon Standex International is expected to generate 0.99 times more return on investment than Kadant. However, Standex International is 1.01 times less risky than Kadant. It trades about 0.12 of its potential returns per unit of risk. Kadant Inc is currently generating about -0.19 per unit of risk. If you would invest 20,369 in Standex International on August 14, 2025 and sell it today you would earn a total of 3,106 from holding Standex International or generate 15.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Standex International vs. Kadant Inc
Performance |
| Timeline |
| Standex International |
| Kadant Inc |
Standex International and Kadant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Standex International and Kadant
The main advantage of trading using opposite Standex International and Kadant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standex International position performs unexpectedly, Kadant 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 Kadant will offset losses from the drop in Kadant's long position.| Standex International vs. American Superconductor | Standex International vs. Kadant Inc | Standex International vs. ATS Corporation | Standex International vs. Enerpac Tool Group |
| Kadant vs. Crane NXT Co | Kadant vs. Standex International | Kadant vs. Chart Industries | Kadant vs. Franklin Electric Co |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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