Correlation Between Polar Capital and Ashtead Technology
Can any of the company-specific risk be diversified away by investing in both Polar Capital and Ashtead Technology 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 Polar Capital and Ashtead Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polar Capital Technology and Ashtead Technology Holdings, you can compare the effects of market volatilities on Polar Capital and Ashtead Technology 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 Polar Capital with a short position of Ashtead Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polar Capital and Ashtead Technology.
Diversification Opportunities for Polar Capital and Ashtead Technology
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Polar and Ashtead is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Polar Capital Technology and Ashtead Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashtead Technology and Polar Capital 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 Polar Capital Technology are associated (or correlated) with Ashtead Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashtead Technology has no effect on the direction of Polar Capital i.e., Polar Capital and Ashtead Technology go up and down completely randomly.
Pair Corralation between Polar Capital and Ashtead Technology
Assuming the 90 days trading horizon Polar Capital is expected to generate 3.03 times less return on investment than Ashtead Technology. But when comparing it to its historical volatility, Polar Capital Technology is 1.62 times less risky than Ashtead Technology. It trades about 0.05 of its potential returns per unit of risk. Ashtead Technology Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 51,300 in Ashtead Technology Holdings on September 12, 2024 and sell it today you would earn a total of 1,900 from holding Ashtead Technology Holdings or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polar Capital Technology vs. Ashtead Technology Holdings
Performance |
| Timeline |
| Polar Capital Technology |
| Ashtead Technology |
Polar Capital and Ashtead Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polar Capital and Ashtead Technology
The main advantage of trading using opposite Polar Capital and Ashtead Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polar Capital position performs unexpectedly, Ashtead Technology 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 Ashtead Technology will offset losses from the drop in Ashtead Technology's long position.| Polar Capital vs. Beowulf Mining | Polar Capital vs. Atalaya Mining | Polar Capital vs. Caledonia Mining | Polar Capital vs. Cairo Communication SpA |
| Ashtead Technology vs. Zoom Video Communications | Ashtead Technology vs. Neometals | Ashtead Technology vs. Coor Service Management | Ashtead Technology vs. Fidelity Sustainable USD |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |