Correlation Between Newmark and Encounter Technologi
Can any of the company-specific risk be diversified away by investing in both Newmark and Encounter Technologi 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 Newmark and Encounter Technologi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newmark Group and Encounter Technologi, you can compare the effects of market volatilities on Newmark and Encounter Technologi 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 Newmark with a short position of Encounter Technologi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmark and Encounter Technologi.
Diversification Opportunities for Newmark and Encounter Technologi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newmark and Encounter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Newmark Group and Encounter Technologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Encounter Technologi and Newmark 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 Newmark Group are associated (or correlated) with Encounter Technologi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Encounter Technologi has no effect on the direction of Newmark i.e., Newmark and Encounter Technologi go up and down completely randomly.
Pair Corralation between Newmark and Encounter Technologi
If you would invest 1,376 in Newmark Group on September 2, 2024 and sell it today you would earn a total of 172.00 from holding Newmark Group or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Newmark Group vs. Encounter Technologi
Performance |
| Timeline |
| Newmark Group |
| Encounter Technologi |
Newmark and Encounter Technologi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmark and Encounter Technologi
The main advantage of trading using opposite Newmark and Encounter Technologi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmark position performs unexpectedly, Encounter Technologi 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 Encounter Technologi will offset losses from the drop in Encounter Technologi's long position.| Newmark vs. Jones Lang LaSalle | Newmark vs. CBRE Group Class | Newmark vs. Colliers International Group | Newmark vs. Marcus Millichap |
| Encounter Technologi vs. IRSA Inversiones Y | Encounter Technologi vs. Anywhere Real Estate | Encounter Technologi vs. Newmark Group | Encounter Technologi vs. New York City |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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