Correlation Between DXC Technology and Centaur Media
Can any of the company-specific risk be diversified away by investing in both DXC Technology and Centaur Media 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 DXC Technology and Centaur Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and Centaur Media, you can compare the effects of market volatilities on DXC Technology and Centaur Media 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 DXC Technology with a short position of Centaur Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Centaur Media.
Diversification Opportunities for DXC Technology and Centaur Media
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between DXC and Centaur is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Centaur Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Media and DXC Technology 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 DXC Technology Co are associated (or correlated) with Centaur Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Media has no effect on the direction of DXC Technology i.e., DXC Technology and Centaur Media go up and down completely randomly.
Pair Corralation between DXC Technology and Centaur Media
Assuming the 90 days trading horizon DXC Technology Co is expected to under-perform the Centaur Media. In addition to that, DXC Technology is 3.18 times more volatile than Centaur Media. It trades about -0.23 of its total potential returns per unit of risk. Centaur Media is currently generating about 0.23 per unit of volatility. If you would invest 2,300 in Centaur Media on October 14, 2024 and sell it today you would earn a total of 50.00 from holding Centaur Media or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
DXC Technology Co vs. Centaur Media
Performance |
| Timeline |
| DXC Technology |
| Centaur Media |
DXC Technology and Centaur Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Centaur Media
The main advantage of trading using opposite DXC Technology and Centaur Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, Centaur Media 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 Centaur Media will offset losses from the drop in Centaur Media's long position.| DXC Technology vs. Mobile Tornado Group | DXC Technology vs. Capital Drilling | DXC Technology vs. Gamma Communications PLC | DXC Technology vs. Cairo Communication SpA |
| Centaur Media vs. Datalogic | Centaur Media vs. EJF Investments | Centaur Media vs. Caledonia Investments | Centaur Media vs. Primorus Investments plc |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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