Correlation Between Cass Information and WINMARK
Can any of the company-specific risk be diversified away by investing in both Cass Information and WINMARK 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 Cass Information and WINMARK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cass Information Systems and WINMARK, you can compare the effects of market volatilities on Cass Information and WINMARK 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 Cass Information with a short position of WINMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cass Information and WINMARK.
Diversification Opportunities for Cass Information and WINMARK
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cass and WINMARK is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cass Information Systems and WINMARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WINMARK and Cass Information 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 Cass Information Systems are associated (or correlated) with WINMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WINMARK has no effect on the direction of Cass Information i.e., Cass Information and WINMARK go up and down completely randomly.
Pair Corralation between Cass Information and WINMARK
Assuming the 90 days horizon Cass Information Systems is expected to generate 1.03 times more return on investment than WINMARK. However, Cass Information is 1.03 times more volatile than WINMARK. It trades about 0.04 of its potential returns per unit of risk. WINMARK is currently generating about 0.01 per unit of risk. If you would invest 3,641 in Cass Information Systems on September 14, 2024 and sell it today you would earn a total of 579.00 from holding Cass Information Systems or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cass Information Systems vs. WINMARK
Performance |
| Timeline |
| Cass Information Systems |
| WINMARK |
Cass Information and WINMARK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cass Information and WINMARK
The main advantage of trading using opposite Cass Information and WINMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cass Information position performs unexpectedly, WINMARK 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 WINMARK will offset losses from the drop in WINMARK's long position.| Cass Information vs. Media and Games | Cass Information vs. SOLSTAD OFFSHORE NK | Cass Information vs. ANGLER GAMING PLC | Cass Information vs. WT OFFSHORE |
| WINMARK vs. TERADATA | WINMARK vs. DOCDATA | WINMARK vs. Gaztransport Technigaz SA | WINMARK vs. Cass Information Systems |
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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