Correlation Between Centaur Media and Concurrent Technologies
Can any of the company-specific risk be diversified away by investing in both Centaur Media and Concurrent Technologies 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 Concurrent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and Concurrent Technologies Plc, you can compare the effects of market volatilities on Centaur Media and Concurrent Technologies 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 Concurrent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and Concurrent Technologies.
Diversification Opportunities for Centaur Media and Concurrent Technologies
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Centaur and Concurrent is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media and Concurrent Technologies Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concurrent Technologies 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 Concurrent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concurrent Technologies has no effect on the direction of Centaur Media i.e., Centaur Media and Concurrent Technologies go up and down completely randomly.
Pair Corralation between Centaur Media and Concurrent Technologies
Assuming the 90 days trading horizon Centaur Media is expected to under-perform the Concurrent Technologies. In addition to that, Centaur Media is 1.48 times more volatile than Concurrent Technologies Plc. It trades about -0.04 of its total potential returns per unit of risk. Concurrent Technologies Plc is currently generating about 0.13 per unit of volatility. If you would invest 7,032 in Concurrent Technologies Plc on September 14, 2024 and sell it today you would earn a total of 6,618 from holding Concurrent Technologies Plc or generate 94.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaur Media vs. Concurrent Technologies Plc
Performance |
| Timeline |
| Centaur Media |
| Concurrent Technologies |
Centaur Media and Concurrent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and Concurrent Technologies
The main advantage of trading using opposite Centaur Media and Concurrent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media position performs unexpectedly, Concurrent Technologies 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 Concurrent Technologies will offset losses from the drop in Concurrent Technologies' long position.| Centaur Media vs. Quantum Blockchain Technologies | Centaur Media vs. Versarien PLC | Centaur Media vs. Argo Group Limited | Centaur Media vs. Tungsten West PLC |
| Concurrent Technologies vs. Berkshire Hathaway | Concurrent Technologies vs. Hyundai Motor | Concurrent Technologies vs. Samsung Electronics Co | Concurrent Technologies vs. Samsung Electronics Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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