Correlation Between Concurrent Technologies and TechnipFMC PLC
Can any of the company-specific risk be diversified away by investing in both Concurrent Technologies and TechnipFMC PLC 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 TechnipFMC PLC 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 TechnipFMC PLC, you can compare the effects of market volatilities on Concurrent Technologies and TechnipFMC PLC 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 TechnipFMC PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and TechnipFMC PLC.
Diversification Opportunities for Concurrent Technologies and TechnipFMC PLC
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Concurrent and TechnipFMC is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and TechnipFMC PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnipFMC PLC 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 TechnipFMC PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnipFMC PLC has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and TechnipFMC PLC go up and down completely randomly.
Pair Corralation between Concurrent Technologies and TechnipFMC PLC
Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 0.66 times more return on investment than TechnipFMC PLC. However, Concurrent Technologies Plc is 1.52 times less risky than TechnipFMC PLC. It trades about -0.03 of its potential returns per unit of risk. TechnipFMC PLC is currently generating about -0.13 per unit of risk. If you would invest 16,800 in Concurrent Technologies Plc on January 28, 2025 and sell it today you would lose (550.00) from holding Concurrent Technologies Plc or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concurrent Technologies Plc vs. TechnipFMC PLC
Performance |
| Timeline |
| Concurrent Technologies |
| TechnipFMC PLC |
Concurrent Technologies and TechnipFMC PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concurrent Technologies and TechnipFMC PLC
The main advantage of trading using opposite Concurrent Technologies and TechnipFMC PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies position performs unexpectedly, TechnipFMC PLC 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 TechnipFMC PLC will offset losses from the drop in TechnipFMC PLC's long position.| Concurrent Technologies vs. Edita Food Industries | Concurrent Technologies vs. Home Depot | Concurrent Technologies vs. Cairn Homes PLC | Concurrent Technologies vs. MoneysupermarketCom Group PLC |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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