Correlation Between Castellum and Widepoint
Can any of the company-specific risk be diversified away by investing in both Castellum and Widepoint 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 Widepoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castellum and Widepoint C, you can compare the effects of market volatilities on Castellum and Widepoint 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 Widepoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castellum and Widepoint.
Diversification Opportunities for Castellum and Widepoint
Significant diversification
The 3 months correlation between Castellum and Widepoint is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Castellum and Widepoint C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Widepoint C 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 Widepoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Widepoint C has no effect on the direction of Castellum i.e., Castellum and Widepoint go up and down completely randomly.
Pair Corralation between Castellum and Widepoint
Considering the 90-day investment horizon Castellum is expected to under-perform the Widepoint. In addition to that, Castellum is 1.26 times more volatile than Widepoint C. It trades about 0.0 of its total potential returns per unit of risk. Widepoint C is currently generating about 0.23 per unit of volatility. If you would invest 368.00 in Widepoint C on August 24, 2024 and sell it today you would earn a total of 110.00 from holding Widepoint C or generate 29.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castellum vs. Widepoint C
Performance |
| Timeline |
| Castellum |
| Widepoint C |
Castellum and Widepoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castellum and Widepoint
The main advantage of trading using opposite Castellum and Widepoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellum position performs unexpectedly, Widepoint 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 Widepoint will offset losses from the drop in Widepoint's long position.| Castellum vs. Flint Telecom Group | Castellum vs. Datametrex AI Limited | Castellum vs. TTEC Holdings | Castellum vs. Digatrade Financial Corp |
| Widepoint vs. Data Storage Corp | Widepoint vs. Usio Inc | Widepoint vs. ARB IOT Group | Widepoint vs. FiscalNote Holdings |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |