Correlation Between Castellum and Value Exchange
Can any of the company-specific risk be diversified away by investing in both Castellum and Value Exchange 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 Value Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castellum and Value Exchange International, you can compare the effects of market volatilities on Castellum and Value Exchange 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 Value Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castellum and Value Exchange.
Diversification Opportunities for Castellum and Value Exchange
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Castellum and Value is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Castellum and Value Exchange International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Exchange Inter 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 Value Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Exchange Inter has no effect on the direction of Castellum i.e., Castellum and Value Exchange go up and down completely randomly.
Pair Corralation between Castellum and Value Exchange
Considering the 90-day investment horizon Castellum is expected to under-perform the Value Exchange. But the stock apears to be less risky and, when comparing its historical volatility, Castellum is 11.04 times less risky than Value Exchange. The stock trades about 0.0 of its potential returns per unit of risk. The Value Exchange International is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2.20 in Value Exchange International on August 24, 2024 and sell it today you would earn a total of 4.47 from holding Value Exchange International or generate 203.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castellum vs. Value Exchange International
Performance |
| Timeline |
| Castellum |
| Value Exchange Inter |
Castellum and Value Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castellum and Value Exchange
The main advantage of trading using opposite Castellum and Value Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellum position performs unexpectedly, Value Exchange 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 Value Exchange will offset losses from the drop in Value Exchange's long position.| Castellum vs. Flint Telecom Group | Castellum vs. Datametrex AI Limited | Castellum vs. TTEC Holdings | Castellum vs. Digatrade Financial Corp |
| Value Exchange vs. Two Hands Corp | Value Exchange vs. Visium Technologies | Value Exchange vs. Tautachrome | Value Exchange vs. V Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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