Correlation Between Concentrix and Digimarc
Can any of the company-specific risk be diversified away by investing in both Concentrix and Digimarc 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 Concentrix and Digimarc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concentrix and Digimarc, you can compare the effects of market volatilities on Concentrix and Digimarc 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 Concentrix with a short position of Digimarc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentrix and Digimarc.
Diversification Opportunities for Concentrix and Digimarc
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Concentrix and Digimarc is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Concentrix and Digimarc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digimarc and Concentrix 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 Concentrix are associated (or correlated) with Digimarc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digimarc has no effect on the direction of Concentrix i.e., Concentrix and Digimarc go up and down completely randomly.
Pair Corralation between Concentrix and Digimarc
Given the investment horizon of 90 days Concentrix is expected to generate 2.36 times less return on investment than Digimarc. But when comparing it to its historical volatility, Concentrix is 2.01 times less risky than Digimarc. It trades about 0.18 of its potential returns per unit of risk. Digimarc is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,550 in Digimarc on October 15, 2024 and sell it today you would earn a total of 679.00 from holding Digimarc or generate 19.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concentrix vs. Digimarc
Performance |
| Timeline |
| Concentrix |
| Digimarc |
Concentrix and Digimarc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concentrix and Digimarc
The main advantage of trading using opposite Concentrix and Digimarc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentrix position performs unexpectedly, Digimarc 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 Digimarc will offset losses from the drop in Digimarc's long position.| Concentrix vs. Genpact Limited | Concentrix vs. ExlService Holdings | Concentrix vs. Science Applications International | Concentrix vs. CLARIVATE 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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