Correlation Between Atresmedia and Concurrent Technologies
Can any of the company-specific risk be diversified away by investing in both Atresmedia and Concurrent Technologies 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 Atresmedia and Concurrent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia and Concurrent Technologies Plc, you can compare the effects of market volatilities on Atresmedia and Concurrent Technologies 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 Atresmedia with a short position of Concurrent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia and Concurrent Technologies.
Diversification Opportunities for Atresmedia and Concurrent Technologies
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atresmedia and Concurrent is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia and Concurrent Technologies Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concurrent Technologies and Atresmedia 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 Atresmedia are associated (or correlated) with Concurrent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concurrent Technologies has no effect on the direction of Atresmedia i.e., Atresmedia and Concurrent Technologies go up and down completely randomly.
Pair Corralation between Atresmedia and Concurrent Technologies
Assuming the 90 days trading horizon Atresmedia is expected to under-perform the Concurrent Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Atresmedia is 1.99 times less risky than Concurrent Technologies. The stock trades about -0.07 of its potential returns per unit of risk. The Concurrent Technologies Plc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 10,102 in Concurrent Technologies Plc on September 1, 2024 and sell it today you would earn a total of 4,298 from holding Concurrent Technologies Plc or generate 42.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atresmedia vs. Concurrent Technologies Plc
Performance |
| Timeline |
| Atresmedia |
| Concurrent Technologies |
Atresmedia and Concurrent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia and Concurrent Technologies
The main advantage of trading using opposite Atresmedia and Concurrent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia position performs unexpectedly, Concurrent Technologies 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 Concurrent Technologies will offset losses from the drop in Concurrent Technologies' long position.| Atresmedia vs. Uniper SE | Atresmedia vs. Mulberry Group PLC | Atresmedia vs. London Security Plc | Atresmedia vs. Triad Group 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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