Correlation Between Cboe UK and Caledonia Investments
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cboe UK Consumer and Caledonia Investments, you can compare the effects of market volatilities on Cboe UK and Caledonia Investments 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 Cboe UK with a short position of Caledonia Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Caledonia Investments.
Diversification Opportunities for Cboe UK and Caledonia Investments
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cboe and Caledonia is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Caledonia Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caledonia Investments and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Caledonia Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caledonia Investments has no effect on the direction of Cboe UK i.e., Cboe UK and Caledonia Investments go up and down completely randomly.
Pair Corralation between Cboe UK and Caledonia Investments
Assuming the 90 days trading horizon Cboe UK Consumer is expected to under-perform the Caledonia Investments. But the index apears to be less risky and, when comparing its historical volatility, Cboe UK Consumer is 1.09 times less risky than Caledonia Investments. The index trades about -0.25 of its potential returns per unit of risk. The Caledonia Investments is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 341,000 in Caledonia Investments on October 11, 2024 and sell it today you would earn a total of 10,000 from holding Caledonia Investments or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Caledonia Investments
Performance |
| Timeline |
Cboe UK and Caledonia Investments Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Caledonia Investments
Pair trading matchups for Caledonia Investments
Pair Trading with Cboe UK and Caledonia Investments
The main advantage of trading using opposite Cboe UK and Caledonia Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Caledonia Investments 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 Caledonia Investments will offset losses from the drop in Caledonia Investments' long position.| Cboe UK vs. Light Science Technologies | Cboe UK vs. Pressure Technologies Plc | Cboe UK vs. Spirent Communications plc | Cboe UK vs. PureTech Health plc |
| Caledonia Investments vs. Blackstone Loan Financing | Caledonia Investments vs. Beazer Homes USA | Caledonia Investments vs. Aeorema Communications Plc | Caledonia Investments vs. Orient Telecoms |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |