Correlation Between Concurrent Technologies and Centaur Media
Can any of the company-specific risk be diversified away by investing in both Concurrent Technologies and Centaur Media 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 Centaur Media 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 Centaur Media, you can compare the effects of market volatilities on Concurrent Technologies and Centaur Media 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 Centaur Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and Centaur Media.
Diversification Opportunities for Concurrent Technologies and Centaur Media
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Concurrent and Centaur is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and Centaur Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Media 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 Centaur Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Media has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and Centaur Media go up and down completely randomly.
Pair Corralation between Concurrent Technologies and Centaur Media
Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 0.68 times more return on investment than Centaur Media. However, Concurrent Technologies Plc is 1.48 times less risky than Centaur Media. It trades about 0.13 of its potential returns per unit of risk. Centaur Media is currently generating about -0.04 per unit of risk. If you would invest 7,032 in Concurrent Technologies Plc on September 14, 2024 and sell it today you would earn a total of 6,618 from holding Concurrent Technologies Plc or generate 94.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concurrent Technologies Plc vs. Centaur Media
Performance |
| Timeline |
| Concurrent Technologies |
| Centaur Media |
Concurrent Technologies and Centaur Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concurrent Technologies and Centaur Media
The main advantage of trading using opposite Concurrent Technologies and Centaur Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies position performs unexpectedly, Centaur Media 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 Centaur Media will offset losses from the drop in Centaur Media'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 |
| Centaur Media vs. Quantum Blockchain Technologies | Centaur Media vs. Versarien PLC | Centaur Media vs. Argo Group Limited | Centaur Media vs. Tungsten West PLC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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