Correlation Between Concurrent Technologies and Burford Capital
Can any of the company-specific risk be diversified away by investing in both Concurrent Technologies and Burford Capital 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 Burford Capital 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 Burford Capital Limited, you can compare the effects of market volatilities on Concurrent Technologies and Burford Capital 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 Burford Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and Burford Capital.
Diversification Opportunities for Concurrent Technologies and Burford Capital
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Concurrent and Burford is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and Burford Capital Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burford Capital 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 Burford Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burford Capital has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and Burford Capital go up and down completely randomly.
Pair Corralation between Concurrent Technologies and Burford Capital
Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 1.87 times more return on investment than Burford Capital. However, Concurrent Technologies is 1.87 times more volatile than Burford Capital Limited. It trades about 0.07 of its potential returns per unit of risk. Burford Capital Limited is currently generating about 0.08 per unit of risk. If you would invest 12,850 in Concurrent Technologies Plc on September 2, 2024 and sell it today you would earn a total of 1,550 from holding Concurrent Technologies Plc or generate 12.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concurrent Technologies Plc vs. Burford Capital Limited
Performance |
| Timeline |
| Concurrent Technologies |
| Burford Capital |
Concurrent Technologies and Burford Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concurrent Technologies and Burford Capital
The main advantage of trading using opposite Concurrent Technologies and Burford Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies position performs unexpectedly, Burford Capital 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 Burford Capital will offset losses from the drop in Burford Capital's long position.| Concurrent Technologies vs. Naturhouse Health SA | Concurrent Technologies vs. Hilton Food Group | Concurrent Technologies vs. Axfood AB | Concurrent Technologies vs. Worldwide Healthcare Trust |
| Burford Capital vs. Catalyst Media Group | Burford Capital vs. Catena Media PLC | Burford Capital vs. Hollywood Bowl Group | Burford Capital vs. Indutrade AB |
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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