Correlation Between Castellum and CSE Global
Can any of the company-specific risk be diversified away by investing in both Castellum and CSE Global 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 Castellum and CSE Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castellum and CSE Global Limited, you can compare the effects of market volatilities on Castellum and CSE Global 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 Castellum with a short position of CSE Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castellum and CSE Global.
Diversification Opportunities for Castellum and CSE Global
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Castellum and CSE is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Castellum and CSE Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSE Global Limited and Castellum 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 Castellum are associated (or correlated) with CSE Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSE Global Limited has no effect on the direction of Castellum i.e., Castellum and CSE Global go up and down completely randomly.
Pair Corralation between Castellum and CSE Global
Considering the 90-day investment horizon Castellum is expected to generate 1.9 times more return on investment than CSE Global. However, Castellum is 1.9 times more volatile than CSE Global Limited. It trades about 0.07 of its potential returns per unit of risk. CSE Global Limited is currently generating about -0.05 per unit of risk. If you would invest 17.00 in Castellum on September 2, 2024 and sell it today you would earn a total of 3.00 from holding Castellum or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castellum vs. CSE Global Limited
Performance |
| Timeline |
| Castellum |
| CSE Global Limited |
Castellum and CSE Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castellum and CSE Global
The main advantage of trading using opposite Castellum and CSE Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellum position performs unexpectedly, CSE Global 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 CSE Global will offset losses from the drop in CSE Global's long position.| Castellum vs. Flint Telecom Group | Castellum vs. Datametrex AI Limited | Castellum vs. TTEC Holdings | Castellum vs. Digatrade Financial Corp |
| CSE Global vs. Appen Limited | CSE Global vs. Appen Limited | CSE Global vs. Deveron Corp | CSE Global vs. Capgemini SE ADR |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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