Correlation Between Concurrent Technologies and Unite Group
Can any of the company-specific risk be diversified away by investing in both Concurrent Technologies and Unite Group 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 Unite Group 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 Unite Group PLC, you can compare the effects of market volatilities on Concurrent Technologies and Unite Group 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 Unite Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and Unite Group.
Diversification Opportunities for Concurrent Technologies and Unite Group
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Concurrent and Unite is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and Unite Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unite Group 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 Unite Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unite Group PLC has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and Unite Group go up and down completely randomly.
Pair Corralation between Concurrent Technologies and Unite Group
Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 3.11 times more return on investment than Unite Group. However, Concurrent Technologies is 3.11 times more volatile than Unite Group PLC. It trades about 0.22 of its potential returns per unit of risk. Unite Group PLC is currently generating about -0.03 per unit of risk. If you would invest 12,650 in Concurrent Technologies Plc on August 31, 2024 and sell it today you would earn a total of 2,250 from holding Concurrent Technologies Plc or generate 17.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Concurrent Technologies Plc vs. Unite Group PLC
Performance |
| Timeline |
| Concurrent Technologies |
| Unite Group PLC |
Concurrent Technologies and Unite Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concurrent Technologies and Unite Group
The main advantage of trading using opposite Concurrent Technologies and Unite Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies position performs unexpectedly, Unite Group 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 Unite Group will offset losses from the drop in Unite Group'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 |
| Unite Group vs. TechnipFMC PLC | Unite Group vs. Raytheon Technologies Corp | Unite Group vs. Concurrent Technologies Plc | Unite Group vs. Schweiter Technologies AG |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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