Correlation Between DXC Technology and Cyxtera Technologies
Can any of the company-specific risk be diversified away by investing in both DXC Technology and Cyxtera Technologies 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 DXC Technology and Cyxtera Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and Cyxtera Technologies, you can compare the effects of market volatilities on DXC Technology and Cyxtera Technologies 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 DXC Technology with a short position of Cyxtera Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Cyxtera Technologies.
Diversification Opportunities for DXC Technology and Cyxtera Technologies
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between DXC and Cyxtera is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Cyxtera Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyxtera Technologies and DXC 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 DXC Technology Co are associated (or correlated) with Cyxtera Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyxtera Technologies has no effect on the direction of DXC Technology i.e., DXC Technology and Cyxtera Technologies go up and down completely randomly.
Pair Corralation between DXC Technology and Cyxtera Technologies
Considering the 90-day investment horizon DXC Technology Co is expected to generate 0.19 times more return on investment than Cyxtera Technologies. However, DXC Technology Co is 5.4 times less risky than Cyxtera Technologies. It trades about 0.0 of its potential returns per unit of risk. Cyxtera Technologies is currently generating about -0.1 per unit of risk. If you would invest 2,725 in DXC Technology Co on September 3, 2024 and sell it today you would lose (474.00) from holding DXC Technology Co or give up 17.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 30.71% |
| Values | Daily Returns |
DXC Technology Co vs. Cyxtera Technologies
Performance |
| Timeline |
| DXC Technology |
| Cyxtera Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DXC Technology and Cyxtera Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Cyxtera Technologies
The main advantage of trading using opposite DXC Technology and Cyxtera Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, Cyxtera Technologies 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 Cyxtera Technologies will offset losses from the drop in Cyxtera Technologies' long position.| DXC Technology vs. Accenture plc | DXC Technology vs. International Business Machines | DXC Technology vs. ASGN Inc | DXC Technology vs. ExlService Holdings |
| Cyxtera Technologies vs. 9F Inc | Cyxtera Technologies vs. FiscalNote Holdings | Cyxtera Technologies vs. ARB IOT Group | Cyxtera Technologies vs. BigBearai 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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