Correlation Between Concurrent Technologies and AcadeMedia
Can any of the company-specific risk be diversified away by investing in both Concurrent Technologies and AcadeMedia 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 AcadeMedia 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 AcadeMedia AB, you can compare the effects of market volatilities on Concurrent Technologies and AcadeMedia 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 AcadeMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and AcadeMedia.
Diversification Opportunities for Concurrent Technologies and AcadeMedia
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Concurrent and AcadeMedia is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and AcadeMedia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcadeMedia AB 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 AcadeMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcadeMedia AB has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and AcadeMedia go up and down completely randomly.
Pair Corralation between Concurrent Technologies and AcadeMedia
Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to under-perform the AcadeMedia. In addition to that, Concurrent Technologies is 1.47 times more volatile than AcadeMedia AB. It trades about -0.18 of its total potential returns per unit of risk. AcadeMedia AB is currently generating about 0.22 per unit of volatility. If you would invest 6,154 in AcadeMedia AB on September 14, 2024 and sell it today you would earn a total of 416.00 from holding AcadeMedia AB or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concurrent Technologies Plc vs. AcadeMedia AB
Performance |
| Timeline |
| Concurrent Technologies |
| AcadeMedia AB |
Concurrent Technologies and AcadeMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concurrent Technologies and AcadeMedia
The main advantage of trading using opposite Concurrent Technologies and AcadeMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies position performs unexpectedly, AcadeMedia 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 AcadeMedia will offset losses from the drop in AcadeMedia's long position.| Concurrent Technologies vs. Berkshire Hathaway | Concurrent Technologies vs. Hyundai Motor | Concurrent Technologies vs. Samsung Electronics Co | Concurrent Technologies vs. Samsung Electronics Co |
| AcadeMedia vs. Indutrade AB | AcadeMedia vs. Panther Metals PLC | AcadeMedia vs. Jacquet Metal Service | AcadeMedia vs. AMG Advanced Metallurgical |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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