Correlation Between CompoSecure and Cellebrite
Can any of the company-specific risk be diversified away by investing in both CompoSecure and Cellebrite 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 CompoSecure and Cellebrite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CompoSecure and Cellebrite DI Equity, you can compare the effects of market volatilities on CompoSecure and Cellebrite 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 CompoSecure with a short position of Cellebrite. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompoSecure and Cellebrite.
Diversification Opportunities for CompoSecure and Cellebrite
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CompoSecure and Cellebrite is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding CompoSecure and Cellebrite DI Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellebrite DI Equity and CompoSecure 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 CompoSecure are associated (or correlated) with Cellebrite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellebrite DI Equity has no effect on the direction of CompoSecure i.e., CompoSecure and Cellebrite go up and down completely randomly.
Pair Corralation between CompoSecure and Cellebrite
Given the investment horizon of 90 days CompoSecure is expected to generate 2.33 times less return on investment than Cellebrite. But when comparing it to its historical volatility, CompoSecure is 2.1 times less risky than Cellebrite. It trades about 0.11 of its potential returns per unit of risk. Cellebrite DI Equity is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 59.00 in Cellebrite DI Equity on August 28, 2024 and sell it today you would earn a total of 456.00 from holding Cellebrite DI Equity or generate 772.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.44% |
| Values | Daily Returns |
CompoSecure vs. Cellebrite DI Equity
Performance |
| Timeline |
| CompoSecure |
| Cellebrite DI Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CompoSecure and Cellebrite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompoSecure and Cellebrite
The main advantage of trading using opposite CompoSecure and Cellebrite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompoSecure position performs unexpectedly, Cellebrite 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 Cellebrite will offset losses from the drop in Cellebrite's long position.| CompoSecure vs. Dave Warrants | CompoSecure vs. Evolv Technologies Holdings | CompoSecure vs. Aquagold International | CompoSecure vs. Morningstar Unconstrained Allocation |
| Cellebrite vs. Red Branch Technologies | Cellebrite vs. Usio Inc | Cellebrite vs. U Haul Holding | Cellebrite vs. Alta Equipment 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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