Correlation Between Concurrent Technologies and Hilton Food
Can any of the company-specific risk be diversified away by investing in both Concurrent Technologies and Hilton Food 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 Hilton Food 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 Hilton Food Group, you can compare the effects of market volatilities on Concurrent Technologies and Hilton Food 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 Hilton Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and Hilton Food.
Diversification Opportunities for Concurrent Technologies and Hilton Food
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Concurrent and Hilton is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and Hilton Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Food Group 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 Hilton Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Food Group has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and Hilton Food go up and down completely randomly.
Pair Corralation between Concurrent Technologies and Hilton Food
Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 1.9 times more return on investment than Hilton Food. However, Concurrent Technologies is 1.9 times more volatile than Hilton Food Group. It trades about 0.12 of its potential returns per unit of risk. Hilton Food Group is currently generating about -0.02 per unit of risk. If you would invest 11,950 in Concurrent Technologies Plc on October 25, 2024 and sell it today you would earn a total of 5,100 from holding Concurrent Technologies Plc or generate 42.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concurrent Technologies Plc vs. Hilton Food Group
Performance |
| Timeline |
| Concurrent Technologies |
| Hilton Food Group |
Concurrent Technologies and Hilton Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concurrent Technologies and Hilton Food
The main advantage of trading using opposite Concurrent Technologies and Hilton Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies position performs unexpectedly, Hilton Food 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 Hilton Food will offset losses from the drop in Hilton Food'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 |
| Hilton Food vs. Tungsten West PLC | Hilton Food vs. Argo Group Limited | Hilton Food vs. Hardide PLC | Hilton Food vs. Gfinity 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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