Correlation Between Converge Information and Atok Big
Can any of the company-specific risk be diversified away by investing in both Converge Information and Atok Big 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 Converge Information and Atok Big into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Converge Information Communications and Atok Big Wedge, you can compare the effects of market volatilities on Converge Information and Atok Big 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 Converge Information with a short position of Atok Big. Check out your portfolio center. Please also check ongoing floating volatility patterns of Converge Information and Atok Big.
Diversification Opportunities for Converge Information and Atok Big
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Converge and Atok is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Converge Information Communica and Atok Big Wedge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atok Big Wedge and Converge Information 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 Converge Information Communications are associated (or correlated) with Atok Big. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atok Big Wedge has no effect on the direction of Converge Information i.e., Converge Information and Atok Big go up and down completely randomly.
Pair Corralation between Converge Information and Atok Big
Assuming the 90 days trading horizon Converge Information Communications is expected to generate 0.6 times more return on investment than Atok Big. However, Converge Information Communications is 1.68 times less risky than Atok Big. It trades about 0.05 of its potential returns per unit of risk. Atok Big Wedge is currently generating about -0.3 per unit of risk. If you would invest 1,610 in Converge Information Communications on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Converge Information Communications or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
Converge Information Communica vs. Atok Big Wedge
Performance |
| Timeline |
| Converge Information |
| Atok Big Wedge |
Converge Information and Atok Big Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Converge Information and Atok Big
The main advantage of trading using opposite Converge Information and Atok Big positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Converge Information position performs unexpectedly, Atok Big 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 Atok Big will offset losses from the drop in Atok Big's long position.| Converge Information vs. Dito CME Holdings | Converge Information vs. Allhome Corp | Converge Information vs. LFM Properties Corp | Converge Information vs. Altus Property Ventures |
| Atok Big vs. Transpacific Broadband Group | Atok Big vs. Atlas Consolidated Mining | Atok Big vs. Manila Mining Corp | Atok Big vs. Semirara Mining Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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