Correlation Between Corsair Gaming and Broadwind
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming and Broadwind 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 Corsair Gaming and Broadwind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and Broadwind, you can compare the effects of market volatilities on Corsair Gaming and Broadwind 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 Corsair Gaming with a short position of Broadwind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Broadwind.
Diversification Opportunities for Corsair Gaming and Broadwind
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Corsair and Broadwind is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and Broadwind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadwind and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with Broadwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadwind has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and Broadwind go up and down completely randomly.
Pair Corralation between Corsair Gaming and Broadwind
Assuming the 90 days horizon Corsair Gaming is expected to generate 0.77 times more return on investment than Broadwind. However, Corsair Gaming is 1.3 times less risky than Broadwind. It trades about 0.36 of its potential returns per unit of risk. Broadwind is currently generating about -0.29 per unit of risk. If you would invest 686.00 in Corsair Gaming on November 7, 2024 and sell it today you would earn a total of 195.00 from holding Corsair Gaming or generate 28.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Corsair Gaming vs. Broadwind
Performance |
| Timeline |
| Corsair Gaming |
| Broadwind |
Corsair Gaming and Broadwind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and Broadwind
The main advantage of trading using opposite Corsair Gaming and Broadwind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming position performs unexpectedly, Broadwind 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 will offset losses from the drop in Broadwind's long position.| Corsair Gaming vs. URBAN OUTFITTERS | Corsair Gaming vs. Infrastrutture Wireless Italiane | Corsair Gaming vs. Wizz Air Holdings | Corsair Gaming vs. G III APPAREL GROUP |
| Broadwind vs. ZINC MEDIA GR | Broadwind vs. Yanzhou Coal Mining | Broadwind vs. Fuji Media Holdings | Broadwind vs. Universal Entertainment |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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