Correlation Between Compucom Software and IG Petrochemicals
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By analyzing existing cross correlation between Compucom Software Limited and IG Petrochemicals Limited, you can compare the effects of market volatilities on Compucom Software and IG Petrochemicals 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 Compucom Software with a short position of IG Petrochemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compucom Software and IG Petrochemicals.
Diversification Opportunities for Compucom Software and IG Petrochemicals
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Compucom and IGPL is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Compucom Software Limited and IG Petrochemicals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IG Petrochemicals and Compucom Software 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 Compucom Software Limited are associated (or correlated) with IG Petrochemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IG Petrochemicals has no effect on the direction of Compucom Software i.e., Compucom Software and IG Petrochemicals go up and down completely randomly.
Pair Corralation between Compucom Software and IG Petrochemicals
Assuming the 90 days trading horizon Compucom Software Limited is expected to generate 1.02 times more return on investment than IG Petrochemicals. However, Compucom Software is 1.02 times more volatile than IG Petrochemicals Limited. It trades about -0.1 of its potential returns per unit of risk. IG Petrochemicals Limited is currently generating about -0.27 per unit of risk. If you would invest 2,880 in Compucom Software Limited on October 10, 2024 and sell it today you would lose (150.00) from holding Compucom Software Limited or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compucom Software Limited vs. IG Petrochemicals Limited
Performance |
| Timeline |
| Compucom Software |
| IG Petrochemicals |
Compucom Software and IG Petrochemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compucom Software and IG Petrochemicals
The main advantage of trading using opposite Compucom Software and IG Petrochemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compucom Software position performs unexpectedly, IG Petrochemicals 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 IG Petrochemicals will offset losses from the drop in IG Petrochemicals' long position.| Compucom Software vs. Kingfa Science Technology | Compucom Software vs. GACM Technologies Limited | Compucom Software vs. COSMO FIRST LIMITED | Compucom Software vs. Delta Manufacturing Limited |
| IG Petrochemicals vs. Clean Science and | IG Petrochemicals vs. ADF Foods Limited | IG Petrochemicals vs. Kaynes Technology India | IG Petrochemicals vs. Cambridge Technology Enterprises |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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