Correlation Between CorVel Corp and Crawford

Can any of the company-specific risk be diversified away by investing in both CorVel Corp and Crawford 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 CorVel Corp and Crawford into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CorVel Corp and Crawford Company, you can compare the effects of market volatilities on CorVel Corp and Crawford 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 CorVel Corp with a short position of Crawford. Check out your portfolio center. Please also check ongoing floating volatility patterns of CorVel Corp and Crawford.

Diversification Opportunities for CorVel Corp and Crawford

0.46

Correlation Coefficient

CorVel Corp  Crawford

Very weak diversification

The 3 months correlation between CorVel and Crawford is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CorVel Corp and Crawford Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford and CorVel Corp 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 CorVel Corp are associated (or correlated) with Crawford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford has no effect on the direction of CorVel Corp i.e., CorVel Corp and Crawford go up and down completely randomly.

Pair Corralation between CorVel Corp and Crawford

Given the investment horizon of 90 days CorVel Corp is expected to under-perform the Crawford. But the stock apears to be less risky and, when comparing its historical volatility, CorVel Corp is 1.37 times less risky than Crawford. The stock trades about -0.24 of its potential returns per unit of risk. The Crawford Company is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  1,107  in Crawford Company on May 5, 2025 and sell it today you would lose (172.00) from holding Crawford Company or give up 15.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

CorVel Corp  vs.  Crawford Company

CorVel Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days CorVel Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Crawford

Risk-Adjusted Performance

Very Weak

Over the last 90 days Crawford Company has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with CorVel Corp and Crawford

The main advantage of trading using opposite CorVel Corp and Crawford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CorVel Corp position performs unexpectedly, Crawford 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 Crawford will offset losses from the drop in Crawford's long position.

The idea behind CorVel Corp and Crawford Company 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.

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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..