Correlation Between Elcom International and Aspen Technology
Can any of the company-specific risk be diversified away by investing in both Elcom International and Aspen Technology 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 Elcom International and Aspen Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elcom International and Aspen Technology, you can compare the effects of market volatilities on Elcom International and Aspen Technology 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 Elcom International with a short position of Aspen Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcom International and Aspen Technology.
Diversification Opportunities for Elcom International and Aspen Technology
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elcom and Aspen is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Elcom International and Aspen Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Technology and Elcom International 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 Elcom International are associated (or correlated) with Aspen Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Technology has no effect on the direction of Elcom International i.e., Elcom International and Aspen Technology go up and down completely randomly.
Pair Corralation between Elcom International and Aspen Technology
If you would invest 23,722 in Aspen Technology on August 28, 2024 and sell it today you would earn a total of 1,372 from holding Aspen Technology or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
Elcom International vs. Aspen Technology
Performance |
| Timeline |
| Elcom International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aspen Technology |
Elcom International and Aspen Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elcom International and Aspen Technology
The main advantage of trading using opposite Elcom International and Aspen Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elcom International position performs unexpectedly, Aspen Technology 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 Aspen Technology will offset losses from the drop in Aspen Technology's long position.| Elcom International vs. NuGene International | Elcom International vs. Zoom Video Communications | Elcom International vs. Bowmo Inc | Elcom International vs. Epazz Inc |
| Aspen Technology vs. Bentley Systems | Aspen Technology vs. Tyler Technologies | Aspen Technology vs. Blackbaud | Aspen Technology vs. SSC Technologies 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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