Correlation Between Compucom Software and N B
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By analyzing existing cross correlation between Compucom Software Limited and N B I, you can compare the effects of market volatilities on Compucom Software and N B 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 N B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compucom Software and N B.
Diversification Opportunities for Compucom Software and N B
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Compucom and NBIFIN is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Compucom Software Limited and N B I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N B I 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 N B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N B I has no effect on the direction of Compucom Software i.e., Compucom Software and N B go up and down completely randomly.
Pair Corralation between Compucom Software and N B
Assuming the 90 days trading horizon Compucom Software Limited is expected to under-perform the N B. But the stock apears to be less risky and, when comparing its historical volatility, Compucom Software Limited is 1.25 times less risky than N B. The stock trades about -0.23 of its potential returns per unit of risk. The N B I is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 229,145 in N B I on November 28, 2024 and sell it today you would lose (5,005) from holding N B I or give up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Compucom Software Limited vs. N B I
Performance |
| Timeline |
| Compucom Software |
| N B I |
Compucom Software and N B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compucom Software and N B
The main advantage of trading using opposite Compucom Software and N B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compucom Software position performs unexpectedly, N B 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 N B will offset losses from the drop in N B's long position.| Compucom Software vs. Spencers Retail Limited | Compucom Software vs. Tips Music Limited | Compucom Software vs. Music Broadcast Limited | Compucom Software vs. Apex Frozen Foods |
| N B vs. Touchwood Entertainment Limited | N B vs. Hilton Metal Forging | N B vs. Indian Metals Ferro | N B vs. Sarthak Metals Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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