Correlation Between 4Imprint Group and CT Global
Can any of the company-specific risk be diversified away by investing in both 4Imprint Group and CT Global 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 4Imprint Group and CT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4Imprint Group Plc and CT Global Managed, you can compare the effects of market volatilities on 4Imprint Group and CT Global 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 4Imprint Group with a short position of CT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4Imprint Group and CT Global.
Diversification Opportunities for 4Imprint Group and CT Global
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 4Imprint and CMPG is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding 4Imprint Group Plc and CT Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Global Managed and 4Imprint Group 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 4Imprint Group Plc are associated (or correlated) with CT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Global Managed has no effect on the direction of 4Imprint Group i.e., 4Imprint Group and CT Global go up and down completely randomly.
Pair Corralation between 4Imprint Group and CT Global
Assuming the 90 days trading horizon 4Imprint Group Plc is expected to generate 6.56 times more return on investment than CT Global. However, 4Imprint Group is 6.56 times more volatile than CT Global Managed. It trades about 0.15 of its potential returns per unit of risk. CT Global Managed is currently generating about 0.24 per unit of risk. If you would invest 476,000 in 4Imprint Group Plc on October 23, 2024 and sell it today you would earn a total of 21,500 from holding 4Imprint Group Plc or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
4Imprint Group Plc vs. CT Global Managed
Performance |
| Timeline |
| 4Imprint Group Plc |
| CT Global Managed |
4Imprint Group and CT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 4Imprint Group and CT Global
The main advantage of trading using opposite 4Imprint Group and CT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4Imprint Group position performs unexpectedly, CT Global 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 CT Global will offset losses from the drop in CT Global's long position.| 4Imprint Group vs. FC Investment Trust | 4Imprint Group vs. Livermore Investments Group | 4Imprint Group vs. Kinnevik Investment AB | 4Imprint Group vs. Canadian General Investments |
| CT Global vs. Liontrust Asset Management | CT Global vs. Impax Asset Management | CT Global vs. Universal Display Corp | CT Global vs. Litigation Capital Management |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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