Correlation Between Cambridge Technology and Hilton Metal
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By analyzing existing cross correlation between Cambridge Technology Enterprises and Hilton Metal Forging, you can compare the effects of market volatilities on Cambridge Technology and Hilton Metal 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 Cambridge Technology with a short position of Hilton Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambridge Technology and Hilton Metal.
Diversification Opportunities for Cambridge Technology and Hilton Metal
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cambridge and Hilton is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cambridge Technology Enterpris and Hilton Metal Forging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Metal Forging and Cambridge Technology 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 Cambridge Technology Enterprises are associated (or correlated) with Hilton Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Metal Forging has no effect on the direction of Cambridge Technology i.e., Cambridge Technology and Hilton Metal go up and down completely randomly.
Pair Corralation between Cambridge Technology and Hilton Metal
Assuming the 90 days trading horizon Cambridge Technology Enterprises is expected to under-perform the Hilton Metal. In addition to that, Cambridge Technology is 1.01 times more volatile than Hilton Metal Forging. It trades about -0.11 of its total potential returns per unit of risk. Hilton Metal Forging is currently generating about -0.03 per unit of volatility. If you would invest 9,750 in Hilton Metal Forging on October 21, 2024 and sell it today you would lose (364.00) from holding Hilton Metal Forging or give up 3.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambridge Technology Enterpris vs. Hilton Metal Forging
Performance |
| Timeline |
| Cambridge Technology |
| Hilton Metal Forging |
Cambridge Technology and Hilton Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambridge Technology and Hilton Metal
The main advantage of trading using opposite Cambridge Technology and Hilton Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambridge Technology position performs unexpectedly, Hilton Metal 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 Hilton Metal will offset losses from the drop in Hilton Metal's long position.| Cambridge Technology vs. Cantabil Retail India | Cambridge Technology vs. Arrow Greentech Limited | Cambridge Technology vs. AVALON TECHNOLOGIES LTD | Cambridge Technology vs. Computer Age Management |
| Hilton Metal vs. Consolidated Construction Consortium | Hilton Metal vs. Biofil Chemicals Pharmaceuticals | Hilton Metal vs. Refex Industries Limited | Hilton Metal vs. Kingfa Science Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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