Correlation Between Carlson Investments and New Tech
Can any of the company-specific risk be diversified away by investing in both Carlson Investments and New Tech 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 Carlson Investments and New Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlson Investments SA and New Tech Capital, you can compare the effects of market volatilities on Carlson Investments and New Tech 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 Carlson Investments with a short position of New Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlson Investments and New Tech.
Diversification Opportunities for Carlson Investments and New Tech
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlson and New is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Carlson Investments SA and New Tech Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Tech Capital and Carlson Investments 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 Carlson Investments SA are associated (or correlated) with New Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Tech Capital has no effect on the direction of Carlson Investments i.e., Carlson Investments and New Tech go up and down completely randomly.
Pair Corralation between Carlson Investments and New Tech
Assuming the 90 days trading horizon Carlson Investments SA is expected to generate 1.29 times more return on investment than New Tech. However, Carlson Investments is 1.29 times more volatile than New Tech Capital. It trades about 0.06 of its potential returns per unit of risk. New Tech Capital is currently generating about -0.13 per unit of risk. If you would invest 374.00 in Carlson Investments SA on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Carlson Investments SA or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlson Investments SA vs. New Tech Capital
Performance |
| Timeline |
| Carlson Investments |
| New Tech Capital |
Carlson Investments and New Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlson Investments and New Tech
The main advantage of trading using opposite Carlson Investments and New Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlson Investments position performs unexpectedly, New Tech 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 New Tech will offset losses from the drop in New Tech's long position.| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. Asseco South Eastern |
| New Tech vs. UniCredit SpA | New Tech vs. Alior Bank SA | New Tech vs. Creotech Instruments SA | New Tech vs. Bank Millennium SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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