Correlation Between ADF Foods and Cambridge Technology
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By analyzing existing cross correlation between ADF Foods Limited and Cambridge Technology Enterprises, you can compare the effects of market volatilities on ADF Foods and Cambridge Technology 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 ADF Foods with a short position of Cambridge Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADF Foods and Cambridge Technology.
Diversification Opportunities for ADF Foods and Cambridge Technology
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between ADF and Cambridge is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding ADF Foods Limited and Cambridge Technology Enterpris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambridge Technology and ADF Foods 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 ADF Foods Limited are associated (or correlated) with Cambridge Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambridge Technology has no effect on the direction of ADF Foods i.e., ADF Foods and Cambridge Technology go up and down completely randomly.
Pair Corralation between ADF Foods and Cambridge Technology
Assuming the 90 days trading horizon ADF Foods Limited is expected to under-perform the Cambridge Technology. But the stock apears to be less risky and, when comparing its historical volatility, ADF Foods Limited is 1.17 times less risky than Cambridge Technology. The stock trades about -0.23 of its potential returns per unit of risk. The Cambridge Technology Enterprises is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 10,864 in Cambridge Technology Enterprises on October 11, 2024 and sell it today you would lose (148.00) from holding Cambridge Technology Enterprises or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADF Foods Limited vs. Cambridge Technology Enterpris
Performance |
| Timeline |
| ADF Foods Limited |
| Cambridge Technology |
ADF Foods and Cambridge Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADF Foods and Cambridge Technology
The main advantage of trading using opposite ADF Foods and Cambridge Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADF Foods position performs unexpectedly, Cambridge Technology 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 Cambridge Technology will offset losses from the drop in Cambridge Technology's long position.| ADF Foods vs. Shyam Telecom Limited | ADF Foods vs. One 97 Communications | ADF Foods vs. Kavveri Telecom Products | ADF Foods vs. Ortel Communications Limited |
| Cambridge Technology vs. Sarveshwar Foods Limited | Cambridge Technology vs. Le Travenues Technology | Cambridge Technology vs. ADF Foods Limited | Cambridge Technology vs. Kohinoor Foods Limited |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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