Correlation Between Cambridge Technology and Spencers Retail
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By analyzing existing cross correlation between Cambridge Technology Enterprises and Spencers Retail Limited, you can compare the effects of market volatilities on Cambridge Technology and Spencers Retail 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 Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambridge Technology and Spencers Retail.
Diversification Opportunities for Cambridge Technology and Spencers Retail
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cambridge and Spencers is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Cambridge Technology Enterpris and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers Retail 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 Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of Cambridge Technology i.e., Cambridge Technology and Spencers Retail go up and down completely randomly.
Pair Corralation between Cambridge Technology and Spencers Retail
Assuming the 90 days trading horizon Cambridge Technology Enterprises is expected to under-perform the Spencers Retail. In addition to that, Cambridge Technology is 1.06 times more volatile than Spencers Retail Limited. It trades about -0.02 of its total potential returns per unit of risk. Spencers Retail Limited is currently generating about 0.01 per unit of volatility. If you would invest 7,755 in Spencers Retail Limited on January 25, 2025 and sell it today you would lose (1,104) from holding Spencers Retail Limited or give up 14.24% 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. Spencers Retail Limited
Performance |
| Timeline |
| Cambridge Technology |
| Spencers Retail |
Cambridge Technology and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambridge Technology and Spencers Retail
The main advantage of trading using opposite Cambridge Technology and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambridge Technology position performs unexpectedly, Spencers Retail 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 Spencers Retail will offset losses from the drop in Spencers Retail's long position.| Cambridge Technology vs. WESTLIFE FOODWORLD LIMITED | Cambridge Technology vs. Cantabil Retail India | Cambridge Technology vs. Kewal Kiran Clothing | Cambridge Technology vs. Spencers Retail Limited |
| Spencers Retail vs. Hindustan Media Ventures | Spencers Retail vs. Bharatiya Global Infomedia | Spencers Retail vs. Univa Foods Limited | Spencers Retail vs. Imagicaaworld Entertainment Limited |
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 CEOs Directory module to screen CEOs from public companies around the world.
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