Correlation Between Ecclesiastical Insurance and Concurrent Technologies
Can any of the company-specific risk be diversified away by investing in both Ecclesiastical Insurance and Concurrent 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 Ecclesiastical Insurance and Concurrent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecclesiastical Insurance Office and Concurrent Technologies Plc, you can compare the effects of market volatilities on Ecclesiastical Insurance and Concurrent 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 Ecclesiastical Insurance with a short position of Concurrent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecclesiastical Insurance and Concurrent Technologies.
Diversification Opportunities for Ecclesiastical Insurance and Concurrent Technologies
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ecclesiastical and Concurrent is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ecclesiastical Insurance Offic and Concurrent Technologies Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concurrent Technologies and Ecclesiastical Insurance 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 Ecclesiastical Insurance Office are associated (or correlated) with Concurrent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concurrent Technologies has no effect on the direction of Ecclesiastical Insurance i.e., Ecclesiastical Insurance and Concurrent Technologies go up and down completely randomly.
Pair Corralation between Ecclesiastical Insurance and Concurrent Technologies
Assuming the 90 days trading horizon Ecclesiastical Insurance Office is expected to under-perform the Concurrent Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Ecclesiastical Insurance Office is 3.48 times less risky than Concurrent Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Concurrent Technologies Plc is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 11,350 in Concurrent Technologies Plc on August 31, 2024 and sell it today you would earn a total of 3,550 from holding Concurrent Technologies Plc or generate 31.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecclesiastical Insurance Offic vs. Concurrent Technologies Plc
Performance |
| Timeline |
| Ecclesiastical Insurance |
| Concurrent Technologies |
Ecclesiastical Insurance and Concurrent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecclesiastical Insurance and Concurrent Technologies
The main advantage of trading using opposite Ecclesiastical Insurance and Concurrent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecclesiastical Insurance position performs unexpectedly, Concurrent 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 Concurrent Technologies will offset losses from the drop in Concurrent Technologies' long position.| Ecclesiastical Insurance vs. Samsung Electronics Co | Ecclesiastical Insurance vs. Samsung Electronics Co | Ecclesiastical Insurance vs. Hyundai Motor | Ecclesiastical Insurance vs. Toyota Motor Corp |
| Concurrent Technologies vs. Berkshire Hathaway | Concurrent Technologies vs. Hyundai Motor | Concurrent Technologies vs. Samsung Electronics Co | Concurrent Technologies vs. Samsung Electronics Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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