Correlation Between IBEX and Computer Task
Can any of the company-specific risk be diversified away by investing in both IBEX and Computer Task 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 IBEX and Computer Task into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IBEX and Computer Task Group, you can compare the effects of market volatilities on IBEX and Computer Task 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 IBEX with a short position of Computer Task. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBEX and Computer Task.
Diversification Opportunities for IBEX and Computer Task
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IBEX and Computer is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding IBEX and Computer Task Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Task Group and IBEX 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 IBEX are associated (or correlated) with Computer Task. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Task Group has no effect on the direction of IBEX i.e., IBEX and Computer Task go up and down completely randomly.
Pair Corralation between IBEX and Computer Task
If you would invest 1,936 in IBEX on August 26, 2024 and sell it today you would earn a total of 124.00 from holding IBEX or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
IBEX vs. Computer Task Group
Performance |
| Timeline |
| IBEX |
| Computer Task Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IBEX and Computer Task Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IBEX and Computer Task
The main advantage of trading using opposite IBEX and Computer Task positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBEX position performs unexpectedly, Computer Task 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 Computer Task will offset losses from the drop in Computer Task's long position.The idea behind IBEX and Computer Task Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Computer Task vs. The Hackett Group | Computer Task vs. CSP Inc | Computer Task vs. Nayax | Computer Task vs. Formula Systems 1985 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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