Correlation Between Cyxtera Technologies and Grid Dynamics
Can any of the company-specific risk be diversified away by investing in both Cyxtera Technologies and Grid Dynamics 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 Cyxtera Technologies and Grid Dynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cyxtera Technologies and Grid Dynamics Holdings, you can compare the effects of market volatilities on Cyxtera Technologies and Grid Dynamics 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 Cyxtera Technologies with a short position of Grid Dynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cyxtera Technologies and Grid Dynamics.
Diversification Opportunities for Cyxtera Technologies and Grid Dynamics
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cyxtera and Grid is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cyxtera Technologies and Grid Dynamics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grid Dynamics Holdings and Cyxtera Technologies 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 Cyxtera Technologies are associated (or correlated) with Grid Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grid Dynamics Holdings has no effect on the direction of Cyxtera Technologies i.e., Cyxtera Technologies and Grid Dynamics go up and down completely randomly.
Pair Corralation between Cyxtera Technologies and Grid Dynamics
If you would invest 1,604 in Grid Dynamics Holdings on August 27, 2024 and sell it today you would earn a total of 286.00 from holding Grid Dynamics Holdings or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Cyxtera Technologies vs. Grid Dynamics Holdings
Performance |
| Timeline |
| Cyxtera Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Grid Dynamics Holdings |
Cyxtera Technologies and Grid Dynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cyxtera Technologies and Grid Dynamics
The main advantage of trading using opposite Cyxtera Technologies and Grid Dynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyxtera Technologies position performs unexpectedly, Grid Dynamics 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 Grid Dynamics will offset losses from the drop in Grid Dynamics' long position.| Cyxtera Technologies vs. 9F Inc | Cyxtera Technologies vs. FiscalNote Holdings | Cyxtera Technologies vs. ARB IOT Group | Cyxtera Technologies vs. BigBearai Holdings |
| Grid Dynamics vs. ExlService Holdings | Grid Dynamics vs. ASGN Inc | Grid Dynamics vs. WNS Holdings | Grid Dynamics vs. Gartner |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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