Correlation Between Cepton and Sky Harbour
Can any of the company-specific risk be diversified away by investing in both Cepton and Sky Harbour 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 Cepton and Sky Harbour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cepton Inc and Sky Harbour Group, you can compare the effects of market volatilities on Cepton and Sky Harbour 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 Cepton with a short position of Sky Harbour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cepton and Sky Harbour.
Diversification Opportunities for Cepton and Sky Harbour
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cepton and Sky is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cepton Inc and Sky Harbour Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky Harbour Group and Cepton 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 Cepton Inc are associated (or correlated) with Sky Harbour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky Harbour Group has no effect on the direction of Cepton i.e., Cepton and Sky Harbour go up and down completely randomly.
Pair Corralation between Cepton and Sky Harbour
Assuming the 90 days horizon Cepton Inc is expected to generate 4.55 times more return on investment than Sky Harbour. However, Cepton is 4.55 times more volatile than Sky Harbour Group. It trades about 0.06 of its potential returns per unit of risk. Sky Harbour Group is currently generating about 0.03 per unit of risk. If you would invest 1.65 in Cepton Inc on September 2, 2024 and sell it today you would lose (0.75) from holding Cepton Inc or give up 45.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.32% |
| Values | Daily Returns |
Cepton Inc vs. Sky Harbour Group
Performance |
| Timeline |
| Cepton Inc |
| Sky Harbour Group |
Cepton and Sky Harbour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cepton and Sky Harbour
The main advantage of trading using opposite Cepton and Sky Harbour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cepton position performs unexpectedly, Sky Harbour 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 Sky Harbour will offset losses from the drop in Sky Harbour's long position.| Cepton vs. Cepton Inc | Cepton vs. Thayer Ventures Acquisition | Cepton vs. Anghami Warrants | Cepton vs. Inspirato |
| Sky Harbour vs. Ducommun Incorporated | Sky Harbour vs. Innovative Solutions and | Sky Harbour vs. National Presto Industries | Sky Harbour vs. Astronics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |