Correlation Between ESGL Holdings and Concentrix
Can any of the company-specific risk be diversified away by investing in both ESGL Holdings and Concentrix 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 ESGL Holdings and Concentrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ESGL Holdings Limited and Concentrix, you can compare the effects of market volatilities on ESGL Holdings and Concentrix 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 ESGL Holdings with a short position of Concentrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESGL Holdings and Concentrix.
Diversification Opportunities for ESGL Holdings and Concentrix
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ESGL and Concentrix is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding ESGL Holdings Limited and Concentrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentrix and ESGL Holdings 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 ESGL Holdings Limited are associated (or correlated) with Concentrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentrix has no effect on the direction of ESGL Holdings i.e., ESGL Holdings and Concentrix go up and down completely randomly.
Pair Corralation between ESGL Holdings and Concentrix
Given the investment horizon of 90 days ESGL Holdings Limited is expected to under-perform the Concentrix. In addition to that, ESGL Holdings is 3.26 times more volatile than Concentrix. It trades about -0.02 of its total potential returns per unit of risk. Concentrix is currently generating about -0.04 per unit of volatility. If you would invest 8,105 in Concentrix on August 31, 2024 and sell it today you would lose (3,610) from holding Concentrix or give up 44.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ESGL Holdings Limited vs. Concentrix
Performance |
| Timeline |
| ESGL Holdings Limited |
| Concentrix |
ESGL Holdings and Concentrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ESGL Holdings and Concentrix
The main advantage of trading using opposite ESGL Holdings and Concentrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESGL Holdings position performs unexpectedly, Concentrix 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 Concentrix will offset losses from the drop in Concentrix's long position.| ESGL Holdings vs. Avalon Holdings | ESGL Holdings vs. Clean Harbors | ESGL Holdings vs. Gfl Environmental Holdings | ESGL Holdings vs. Montrose Environmental Grp |
| Concentrix vs. Genpact Limited | Concentrix vs. ExlService Holdings | Concentrix vs. Science Applications International | Concentrix vs. CLARIVATE PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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