Correlation Between Converge Technology and ISign Media
Can any of the company-specific risk be diversified away by investing in both Converge Technology and ISign Media 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 ISign Media 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 iSign Media Solutions, you can compare the effects of market volatilities on Converge Technology and ISign Media 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 ISign Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Converge Technology and ISign Media.
Diversification Opportunities for Converge Technology and ISign Media
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Converge and ISign is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Converge Technology Solutions and iSign Media Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSign Media Solutions 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 ISign Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSign Media Solutions has no effect on the direction of Converge Technology i.e., Converge Technology and ISign Media go up and down completely randomly.
Pair Corralation between Converge Technology and ISign Media
Assuming the 90 days trading horizon Converge Technology Solutions is expected to generate 5.13 times more return on investment than ISign Media. However, Converge Technology is 5.13 times more volatile than iSign Media Solutions. It trades about 0.01 of its potential returns per unit of risk. iSign Media Solutions is currently generating about 0.05 per unit of risk. If you would invest 340.00 in Converge Technology Solutions on November 3, 2024 and sell it today you would lose (1.00) from holding Converge Technology Solutions or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 43.48% |
| Values | Daily Returns |
Converge Technology Solutions vs. iSign Media Solutions
Performance |
| Timeline |
| Converge Technology |
| iSign Media Solutions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Converge Technology and ISign Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Converge Technology and ISign Media
The main advantage of trading using opposite Converge Technology and ISign Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Converge Technology position performs unexpectedly, ISign Media 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 ISign Media will offset losses from the drop in ISign Media's 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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