Correlation Between Cricut and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both Cricut and Corsair Gaming 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 Cricut and Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cricut Inc and Corsair Gaming, you can compare the effects of market volatilities on Cricut and Corsair Gaming 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 Cricut with a short position of Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cricut and Corsair Gaming.
Diversification Opportunities for Cricut and Corsair Gaming
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cricut and Corsair is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cricut Inc and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming and Cricut 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 Cricut Inc are associated (or correlated) with Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of Cricut i.e., Cricut and Corsair Gaming go up and down completely randomly.
Pair Corralation between Cricut and Corsair Gaming
Given the investment horizon of 90 days Cricut Inc is expected to generate 1.45 times more return on investment than Corsair Gaming. However, Cricut is 1.45 times more volatile than Corsair Gaming. It trades about 0.0 of its potential returns per unit of risk. Corsair Gaming is currently generating about -0.06 per unit of risk. If you would invest 658.00 in Cricut Inc on August 27, 2024 and sell it today you would lose (148.00) from holding Cricut Inc or give up 22.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cricut Inc vs. Corsair Gaming
Performance |
| Timeline |
| Cricut Inc |
| Corsair Gaming |
Cricut and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cricut and Corsair Gaming
The main advantage of trading using opposite Cricut and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cricut position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| Cricut vs. D Wave Quantum | Cricut vs. Rigetti Computing | Cricut vs. Super Micro Computer | Cricut vs. Quantum Computing |
| Corsair Gaming vs. D Wave Quantum | Corsair Gaming vs. Rigetti Computing | Corsair Gaming vs. Cricut Inc | Corsair Gaming vs. Quantum Computing |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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