Correlation Between Keynote Financial and Compucom Software
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By analyzing existing cross correlation between Keynote Financial Services and Compucom Software Limited, you can compare the effects of market volatilities on Keynote Financial and Compucom Software 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 Keynote Financial with a short position of Compucom Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keynote Financial and Compucom Software.
Diversification Opportunities for Keynote Financial and Compucom Software
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Keynote and Compucom is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Keynote Financial Services and Compucom Software Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compucom Software and Keynote Financial 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 Keynote Financial Services are associated (or correlated) with Compucom Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compucom Software has no effect on the direction of Keynote Financial i.e., Keynote Financial and Compucom Software go up and down completely randomly.
Pair Corralation between Keynote Financial and Compucom Software
Assuming the 90 days trading horizon Keynote Financial Services is expected to under-perform the Compucom Software. But the stock apears to be less risky and, when comparing its historical volatility, Keynote Financial Services is 1.59 times less risky than Compucom Software. The stock trades about -0.36 of its potential returns per unit of risk. The Compucom Software Limited is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,839 in Compucom Software Limited on August 28, 2024 and sell it today you would lose (32.00) from holding Compucom Software Limited or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keynote Financial Services vs. Compucom Software Limited
Performance |
| Timeline |
| Keynote Financial |
| Compucom Software |
Keynote Financial and Compucom Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keynote Financial and Compucom Software
The main advantage of trading using opposite Keynote Financial and Compucom Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keynote Financial position performs unexpectedly, Compucom Software 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 Compucom Software will offset losses from the drop in Compucom Software's long position.| Keynote Financial vs. Kingfa Science Technology | Keynote Financial vs. Rico Auto Industries | Keynote Financial vs. GACM Technologies Limited | Keynote Financial vs. COSMO FIRST LIMITED |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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