Correlation Between Corsair Gaming and Timken
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming and Timken 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 Corsair Gaming and Timken into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and Timken Company, you can compare the effects of market volatilities on Corsair Gaming and Timken 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 Corsair Gaming with a short position of Timken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Timken.
Diversification Opportunities for Corsair Gaming and Timken
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Corsair and Timken is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and Timken Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timken Company and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with Timken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timken Company has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and Timken go up and down completely randomly.
Pair Corralation between Corsair Gaming and Timken
Given the investment horizon of 90 days Corsair Gaming is expected to generate 1.34 times more return on investment than Timken. However, Corsair Gaming is 1.34 times more volatile than Timken Company. It trades about 0.15 of its potential returns per unit of risk. Timken Company is currently generating about 0.01 per unit of risk. If you would invest 583.00 in Corsair Gaming on September 12, 2024 and sell it today you would earn a total of 188.00 from holding Corsair Gaming or generate 32.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corsair Gaming vs. Timken Company
Performance |
| Timeline |
| Corsair Gaming |
| Timken Company |
Corsair Gaming and Timken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and Timken
The main advantage of trading using opposite Corsair Gaming and Timken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming position performs unexpectedly, Timken 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 Timken will offset losses from the drop in Timken's long position.| Corsair Gaming vs. Clover Health Investments | Corsair Gaming vs. Skillz Platform | Corsair Gaming vs. Fubotv Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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