Correlation Between Concurrent Technologies and Schweiter Technologies
Can any of the company-specific risk be diversified away by investing in both Concurrent Technologies and Schweiter 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 Concurrent Technologies and Schweiter Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concurrent Technologies Plc and Schweiter Technologies AG, you can compare the effects of market volatilities on Concurrent Technologies and Schweiter 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 Concurrent Technologies with a short position of Schweiter Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and Schweiter Technologies.
Diversification Opportunities for Concurrent Technologies and Schweiter Technologies
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Concurrent and Schweiter is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and Schweiter Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweiter Technologies and Concurrent Technologies 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 Concurrent Technologies Plc are associated (or correlated) with Schweiter Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweiter Technologies has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and Schweiter Technologies go up and down completely randomly.
Pair Corralation between Concurrent Technologies and Schweiter Technologies
Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 1.46 times more return on investment than Schweiter Technologies. However, Concurrent Technologies is 1.46 times more volatile than Schweiter Technologies AG. It trades about 0.2 of its potential returns per unit of risk. Schweiter Technologies AG is currently generating about -0.02 per unit of risk. If you would invest 11,350 in Concurrent Technologies Plc on August 31, 2024 and sell it today you would earn a total of 3,550 from holding Concurrent Technologies Plc or generate 31.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concurrent Technologies Plc vs. Schweiter Technologies AG
Performance |
| Timeline |
| Concurrent Technologies |
| Schweiter Technologies |
Concurrent Technologies and Schweiter Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concurrent Technologies and Schweiter Technologies
The main advantage of trading using opposite Concurrent Technologies and Schweiter Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies position performs unexpectedly, Schweiter 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 Schweiter Technologies will offset losses from the drop in Schweiter Technologies' long position.| Concurrent Technologies vs. Berkshire Hathaway | Concurrent Technologies vs. Hyundai Motor | Concurrent Technologies vs. Samsung Electronics Co | Concurrent Technologies vs. Samsung Electronics Co |
| Schweiter Technologies vs. Neometals | Schweiter Technologies vs. Coor Service Management | Schweiter Technologies vs. Aeorema Communications Plc | Schweiter Technologies vs. JLEN Environmental Assets |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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