Correlation Between CAP LEASE and Concurrent Technologies
Can any of the company-specific risk be diversified away by investing in both CAP LEASE 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 CAP LEASE and Concurrent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAP LEASE AVIATION and Concurrent Technologies Plc, you can compare the effects of market volatilities on CAP LEASE 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 CAP LEASE with a short position of Concurrent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAP LEASE and Concurrent Technologies.
Diversification Opportunities for CAP LEASE and Concurrent Technologies
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CAP and Concurrent is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding CAP LEASE AVIATION and Concurrent Technologies Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concurrent Technologies and CAP LEASE 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 CAP LEASE AVIATION 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 CAP LEASE i.e., CAP LEASE and Concurrent Technologies go up and down completely randomly.
Pair Corralation between CAP LEASE and Concurrent Technologies
If you would invest 13,200 in Concurrent Technologies Plc on October 29, 2024 and sell it today you would earn a total of 4,600 from holding Concurrent Technologies Plc or generate 34.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAP LEASE AVIATION vs. Concurrent Technologies Plc
Performance |
| Timeline |
| CAP LEASE AVIATION |
| Concurrent Technologies |
CAP LEASE and Concurrent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAP LEASE and Concurrent Technologies
The main advantage of trading using opposite CAP LEASE and Concurrent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAP LEASE 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.| CAP LEASE vs. Roadside Real Estate | CAP LEASE vs. Norman Broadbent Plc | CAP LEASE vs. Check Point Software | CAP LEASE vs. Gaztransport et Technigaz |
| Concurrent Technologies vs. Rheinmetall AG | Concurrent Technologies vs. Qurate Retail Series | Concurrent Technologies vs. LPKF Laser Electronics | Concurrent Technologies vs. Ross Stores |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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