Correlation Between CLPS and Concentrix
Can any of the company-specific risk be diversified away by investing in both CLPS and Concentrix 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 CLPS and Concentrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CLPS Inc and Concentrix, you can compare the effects of market volatilities on CLPS and Concentrix 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 CLPS with a short position of Concentrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLPS and Concentrix.
Diversification Opportunities for CLPS and Concentrix
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CLPS and Concentrix is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding CLPS Inc and Concentrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentrix and CLPS 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 CLPS Inc are associated (or correlated) with Concentrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentrix has no effect on the direction of CLPS i.e., CLPS and Concentrix go up and down completely randomly.
Pair Corralation between CLPS and Concentrix
Given the investment horizon of 90 days CLPS Inc is expected to generate 1.35 times more return on investment than Concentrix. However, CLPS is 1.35 times more volatile than Concentrix. It trades about 0.02 of its potential returns per unit of risk. Concentrix is currently generating about -0.1 per unit of risk. If you would invest 107.00 in CLPS Inc on August 24, 2024 and sell it today you would earn a total of 6.00 from holding CLPS Inc or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CLPS Inc vs. Concentrix
Performance |
| Timeline |
| CLPS Inc |
| Concentrix |
CLPS and Concentrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CLPS and Concentrix
The main advantage of trading using opposite CLPS and Concentrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLPS position performs unexpectedly, Concentrix 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 Concentrix will offset losses from the drop in Concentrix's long position.| CLPS vs. Concentrix | CLPS vs. Accenture plc | CLPS vs. International Business Machines | CLPS vs. Cognizant Technology Solutions |
| Concentrix vs. Genpact Limited | Concentrix vs. ExlService Holdings | Concentrix vs. Science Applications International | Concentrix vs. CLARIVATE PLC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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