Correlation Between Concurrent Technologies and Aptitude Software
Can any of the company-specific risk be diversified away by investing in both Concurrent Technologies and Aptitude Software 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 Aptitude Software 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 Aptitude Software Group, you can compare the effects of market volatilities on Concurrent Technologies and Aptitude Software 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 Aptitude Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and Aptitude Software.
Diversification Opportunities for Concurrent Technologies and Aptitude Software
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Concurrent and Aptitude is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and Aptitude Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptitude Software 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 Aptitude Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptitude Software has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and Aptitude Software go up and down completely randomly.
Pair Corralation between Concurrent Technologies and Aptitude Software
Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 1.36 times more return on investment than Aptitude Software. However, Concurrent Technologies is 1.36 times more volatile than Aptitude Software Group. It trades about 0.12 of its potential returns per unit of risk. Aptitude Software Group is currently generating about -0.08 per unit of risk. If you would invest 15,150 in Concurrent Technologies Plc on October 25, 2024 and sell it today you would earn a total of 1,900 from holding Concurrent Technologies Plc or generate 12.54% 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. Aptitude Software Group
Performance |
| Timeline |
| Concurrent Technologies |
| Aptitude Software |
Concurrent Technologies and Aptitude Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concurrent Technologies and Aptitude Software
The main advantage of trading using opposite Concurrent Technologies and Aptitude Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies position performs unexpectedly, Aptitude Software 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 Aptitude Software will offset losses from the drop in Aptitude Software's long position.| Concurrent Technologies vs. Associated British Foods | Concurrent Technologies vs. SBM Offshore NV | Concurrent Technologies vs. Solstad Offshore ASA | Concurrent Technologies vs. National Beverage Corp |
| Aptitude Software vs. Cairo Communication SpA | Aptitude Software vs. Zoom Video Communications | Aptitude Software vs. MediaZest plc | Aptitude Software vs. Mobile Tornado 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |