Correlation Between Centaur Media and Aptitude Software
Can any of the company-specific risk be diversified away by investing in both Centaur Media and Aptitude Software 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 Centaur Media and Aptitude Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and Aptitude Software Group, you can compare the effects of market volatilities on Centaur Media and Aptitude Software 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 Centaur Media with a short position of Aptitude Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and Aptitude Software.
Diversification Opportunities for Centaur Media and Aptitude Software
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centaur and Aptitude is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media and Aptitude Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptitude Software and Centaur Media 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 Centaur Media are associated (or correlated) with Aptitude Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptitude Software has no effect on the direction of Centaur Media i.e., Centaur Media and Aptitude Software go up and down completely randomly.
Pair Corralation between Centaur Media and Aptitude Software
Assuming the 90 days trading horizon Centaur Media is expected to generate 1.87 times more return on investment than Aptitude Software. However, Centaur Media is 1.87 times more volatile than Aptitude Software Group. It trades about 0.2 of its potential returns per unit of risk. Aptitude Software Group is currently generating about -0.16 per unit of risk. If you would invest 2,300 in Centaur Media on October 22, 2024 and sell it today you would earn a total of 300.00 from holding Centaur Media or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaur Media vs. Aptitude Software Group
Performance |
| Timeline |
| Centaur Media |
| Aptitude Software |
Centaur Media and Aptitude Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and Aptitude Software
The main advantage of trading using opposite Centaur Media and Aptitude Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media position performs unexpectedly, Aptitude Software 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 Aptitude Software will offset losses from the drop in Aptitude Software's long position.| Centaur Media vs. Indutrade AB | Centaur Media vs. Adriatic Metals | Centaur Media vs. Power Metal Resources | Centaur Media vs. Golden Metal Resources |
| Aptitude Software vs. Centaur Media | Aptitude Software vs. Liberty Media Corp | Aptitude Software vs. Flutter Entertainment PLC | Aptitude Software vs. Amedeo Air Four |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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