Correlation Between Computer Modelling and Senvest Capital
Can any of the company-specific risk be diversified away by investing in both Computer Modelling and Senvest Capital 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 Computer Modelling and Senvest Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer Modelling Group and Senvest Capital, you can compare the effects of market volatilities on Computer Modelling and Senvest Capital 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 Computer Modelling with a short position of Senvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Modelling and Senvest Capital.
Diversification Opportunities for Computer Modelling and Senvest Capital
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Computer and Senvest is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Computer Modelling Group and Senvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senvest Capital and Computer Modelling 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 Computer Modelling Group are associated (or correlated) with Senvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senvest Capital has no effect on the direction of Computer Modelling i.e., Computer Modelling and Senvest Capital go up and down completely randomly.
Pair Corralation between Computer Modelling and Senvest Capital
Assuming the 90 days trading horizon Computer Modelling is expected to generate 5.41 times less return on investment than Senvest Capital. In addition to that, Computer Modelling is 4.27 times more volatile than Senvest Capital. It trades about 0.02 of its total potential returns per unit of risk. Senvest Capital is currently generating about 0.49 per unit of volatility. If you would invest 32,500 in Senvest Capital on September 14, 2024 and sell it today you would earn a total of 2,500 from holding Senvest Capital or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Computer Modelling Group vs. Senvest Capital
Performance |
| Timeline |
| Computer Modelling |
| Senvest Capital |
Computer Modelling and Senvest Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Modelling and Senvest Capital
The main advantage of trading using opposite Computer Modelling and Senvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Modelling position performs unexpectedly, Senvest Capital 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 Senvest Capital will offset losses from the drop in Senvest Capital's long position.| Computer Modelling vs. Adcore Inc | Computer Modelling vs. Emerge Commerce | Computer Modelling vs. Quisitive Technology Solutions | Computer Modelling vs. DGTL Holdings |
| Senvest Capital vs. Air Canada | Senvest Capital vs. Maple Leaf Foods | Senvest Capital vs. Leons Furniture Limited | Senvest Capital vs. Computer Modelling Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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