Correlation Between Converge Technology and ExGen Resources
Can any of the company-specific risk be diversified away by investing in both Converge Technology and ExGen Resources 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 ExGen Resources 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 ExGen Resources, you can compare the effects of market volatilities on Converge Technology and ExGen Resources 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 ExGen Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Converge Technology and ExGen Resources.
Diversification Opportunities for Converge Technology and ExGen Resources
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Converge and ExGen is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Converge Technology Solutions and ExGen Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExGen Resources 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 ExGen Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExGen Resources has no effect on the direction of Converge Technology i.e., Converge Technology and ExGen Resources go up and down completely randomly.
Pair Corralation between Converge Technology and ExGen Resources
If you would invest 303.00 in Converge Technology Solutions on August 31, 2024 and sell it today you would earn a total of 27.00 from holding Converge Technology Solutions or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Converge Technology Solutions vs. ExGen Resources
Performance |
| Timeline |
| Converge Technology |
| ExGen Resources |
Converge Technology and ExGen Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Converge Technology and ExGen Resources
The main advantage of trading using opposite Converge Technology and ExGen Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Converge Technology position performs unexpectedly, ExGen Resources 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 ExGen Resources will offset losses from the drop in ExGen Resources' long position.| Converge Technology vs. Mene Inc | Converge Technology vs. Africa Oil Corp | Converge Technology vs. Financial 15 Split | Converge Technology vs. Rubicon Organics |
| ExGen Resources vs. Quipt Home Medical | ExGen Resources vs. Converge Technology Solutions | ExGen Resources vs. Air Canada | ExGen Resources vs. Altair Resources |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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