Correlation Between CSW Industrials, and Broadwind Energy

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

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

Diversification Opportunities for CSW Industrials, and Broadwind Energy

-0.71

Correlation Coefficient

CSW Industrials,  Broadwind Energy

Pay attention - limited upside

The 3 months correlation between CSW and Broadwind is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding CSW Industrials, and Broadwind Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadwind Energy and CSW Industrials, 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 CSW Industrials, are associated (or correlated) with Broadwind Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadwind Energy has no effect on the direction of CSW Industrials, i.e., CSW Industrials, and Broadwind Energy go up and down completely randomly.

Pair Corralation between CSW Industrials, and Broadwind Energy

Considering the 90-day investment horizon CSW Industrials, is expected to under-perform the Broadwind Energy. But the stock apears to be less risky and, when comparing its historical volatility, CSW Industrials, is 2.73 times less risky than Broadwind Energy. The stock trades about -0.14 of its potential returns per unit of risk. The Broadwind Energy is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  166.00  in Broadwind Energy on May 14, 2025 and sell it today you would earn a total of  47.00  from holding Broadwind Energy or generate 28.31% return on investment over 90 days.

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

CSW Industrials,  vs.  Broadwind Energy

CSW Industrials,

Risk-Adjusted Performance

Weakest

Over the last 90 days CSW Industrials, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Broadwind Energy

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Broadwind Energy are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Broadwind Energy displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSW Industrials, and Broadwind Energy

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

The idea behind CSW Industrials, and Broadwind Energy 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.