Correlation Between Celestica and Awilco Drilling
Can any of the company-specific risk be diversified away by investing in both Celestica and Awilco Drilling 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 Celestica and Awilco Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and Awilco Drilling PLC, you can compare the effects of market volatilities on Celestica and Awilco Drilling 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 Celestica with a short position of Awilco Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and Awilco Drilling.
Diversification Opportunities for Celestica and Awilco Drilling
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Celestica and Awilco is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and Awilco Drilling PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awilco Drilling PLC and Celestica 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 Celestica are associated (or correlated) with Awilco Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awilco Drilling PLC has no effect on the direction of Celestica i.e., Celestica and Awilco Drilling go up and down completely randomly.
Pair Corralation between Celestica and Awilco Drilling
Considering the 90-day investment horizon Celestica is expected to generate 1.83 times more return on investment than Awilco Drilling. However, Celestica is 1.83 times more volatile than Awilco Drilling PLC. It trades about 0.41 of its potential returns per unit of risk. Awilco Drilling PLC is currently generating about -0.22 per unit of risk. If you would invest 9,545 in Celestica on October 21, 2024 and sell it today you would earn a total of 1,783 from holding Celestica or generate 18.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Celestica vs. Awilco Drilling PLC
Performance |
| Timeline |
| Celestica |
| Awilco Drilling PLC |
Celestica and Awilco Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celestica and Awilco Drilling
The main advantage of trading using opposite Celestica and Awilco Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica position performs unexpectedly, Awilco Drilling 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 Awilco Drilling will offset losses from the drop in Awilco Drilling's long position.| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
| Awilco Drilling vs. Loud Beverage Group | Awilco Drilling vs. Vita Coco | Awilco Drilling vs. Monster Beverage Corp | Awilco Drilling vs. Celestica |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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