Correlation Between Converge Technology and Enghouse Systems
Can any of the company-specific risk be diversified away by investing in both Converge Technology and Enghouse Systems 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 Converge Technology and Enghouse Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Converge Technology Solutions and Enghouse Systems, you can compare the effects of market volatilities on Converge Technology and Enghouse Systems 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 Converge Technology with a short position of Enghouse Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Converge Technology and Enghouse Systems.
Diversification Opportunities for Converge Technology and Enghouse Systems
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Converge and Enghouse is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Converge Technology Solutions and Enghouse Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enghouse Systems and Converge 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 Converge Technology Solutions are associated (or correlated) with Enghouse Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enghouse Systems has no effect on the direction of Converge Technology i.e., Converge Technology and Enghouse Systems go up and down completely randomly.
Pair Corralation between Converge Technology and Enghouse Systems
Assuming the 90 days trading horizon Converge Technology is expected to generate 2.55 times less return on investment than Enghouse Systems. In addition to that, Converge Technology is 2.55 times more volatile than Enghouse Systems. It trades about 0.01 of its total potential returns per unit of risk. Enghouse Systems is currently generating about 0.09 per unit of volatility. If you would invest 2,723 in Enghouse Systems on November 9, 2024 and sell it today you would earn a total of 56.00 from holding Enghouse Systems or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Converge Technology Solutions vs. Enghouse Systems
Performance |
| Timeline |
| Converge Technology |
| Enghouse Systems |
Converge Technology and Enghouse Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Converge Technology and Enghouse Systems
The main advantage of trading using opposite Converge Technology and Enghouse Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Converge Technology position performs unexpectedly, Enghouse Systems 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 Enghouse Systems will offset losses from the drop in Enghouse Systems' long position.| Converge Technology vs. Dye Durham | Converge Technology vs. Docebo Inc | Converge Technology vs. Topicus | Converge Technology vs. goeasy |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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