Correlation Between Cambridge Technology and Home First
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By analyzing existing cross correlation between Cambridge Technology Enterprises and Home First Finance, you can compare the effects of market volatilities on Cambridge Technology and Home First 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 Home First. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambridge Technology and Home First.
Diversification Opportunities for Cambridge Technology and Home First
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cambridge and Home is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cambridge Technology Enterpris and Home First Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home First Finance 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 Home First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home First Finance has no effect on the direction of Cambridge Technology i.e., Cambridge Technology and Home First go up and down completely randomly.
Pair Corralation between Cambridge Technology and Home First
Assuming the 90 days trading horizon Cambridge Technology Enterprises is expected to generate 2.0 times more return on investment than Home First. However, Cambridge Technology is 2.0 times more volatile than Home First Finance. It trades about 0.27 of its potential returns per unit of risk. Home First Finance is currently generating about -0.15 per unit of risk. If you would invest 8,582 in Cambridge Technology Enterprises on September 29, 2024 and sell it today you would earn a total of 1,804 from holding Cambridge Technology Enterprises or generate 21.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambridge Technology Enterpris vs. Home First Finance
Performance |
| Timeline |
| Cambridge Technology |
| Home First Finance |
Cambridge Technology and Home First Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambridge Technology and Home First
The main advantage of trading using opposite Cambridge Technology and Home First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambridge Technology position performs unexpectedly, Home First 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 Home First will offset losses from the drop in Home First's long position.| Cambridge Technology vs. Univa Foods Limited | Cambridge Technology vs. LT Foods Limited | Cambridge Technology vs. Agro Tech Foods | Cambridge Technology vs. Pondy Oxides Chemicals |
| Home First vs. Reliance Industries Limited | Home First vs. Oil Natural Gas | Home First vs. Power Finance | Home First vs. Indian Oil |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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